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Resolve to Reduce Your Incidental Driving Exposure

- February 27, 2019 by John Virsack, ARM (View all posts by John)

Many companies, even though they do not have a fleet of vehicles, or any company owned vehicles, may still have an exposure for motor vehicle accidents. For instance, if you may have employees who drive their own vehicles to:

  • Visit clients on company business
  • Attend sales meetings
  • Take deposits to the bank
  • Pick up lunch for an office event
  • Deliver something to a client or to another company’s place of business
  • Run company errands or pick up office supplies, etc.

In any of these incidences, your employee could be injured in a vehicle accident. Their injuries would be a workers’ compensation claim, and therefore would directly affect your company’s workers’ compensation ex-mod.

To protect your company from this exposure, you should create a program for employees that drive their own vehicles on company business. Here are some important steps to consider in your company’s non-owned auto program:

  1. Make a list of employees who do or could drive on company business, in their own vehicles.
  2. Collect personal insurance certificates on their vehicles, and have the employee provide the company with proof of insurance annually or semi-annually, depending on the terms of their policy.  Check with your insurance agent or broker as to what the minimum insurance requirements should be.
  3. Narrow down your driver list as much as possible based on results of the MVR checks and need. The fewer people driving, the less exposure.
  4. Have employees sign an MVR authorization form to allow your company to check their State Motor Vehicle Records.
  5. Assign the task of checking the employees’ Motor Vehicle Records annually to a staff member, or sign up for an employer notification program, if available in your state.  Some insurance agents and brokers offer this service as well.
  6. Establish company driver eligibility guidelines.  These guidelines should state the number and type of violations or accidents that would disqualify an employee’s driving eligibility for the company.
  7. Conduct training on safe driving and defensive driving by showing videos or having conversations with all drivers.  In addition, include education about distracted driving, maintaining proper following distance and driving in inclement weather.

ICW Group has online resources including computer-based interactive defensive driving courses and safety topic sheets on a variety of safe driving topics available at no cost to our policyholders. Contact your ICW Risk Management Consultant for more information.

For a better understanding of the liability associated with this exposure, you should talk with your insurance agent or broker about Non-Owned & Hired Auto Liability Insurance.  Non-Owned & Hired Auto Liability Insurance covers bodily injury and property damage caused by a vehicle you hire (including rented or borrowed vehicles) or losses caused by non-owned vehicles (vehicles owned by others, including vehicles owned by your employees).