Here’s An Additional #RiskManagement Technique for Employers To #PreventClaims

Here’s An Additional #RiskManagement Technique for Employers To #PreventClaims

Those of you who require staff to drive for your business naturally have a greater probability of claims compared to those employers where no vehicles are used in their operations.  This risks is present whether the vehicles are owned by the employer or employees use their personal autos on company time.

It is interesting how the employer concern varies about who drives on their behalf. It seems to depend upon the number of vehicles required in the business or about regulations specific to the employer’s operations.  To those of us in the #RiskManagement business, even one vehicle used in an employer’s operation can be a big liability unless it is properly managed.

At the time an auto accident occurs most employers become very concerned who is driving, especially when their driver is responsible for the incident.  When it is learned the employee has also accumulated a dismal driving history over the years, employer panic sets in.  Obviously, at this point it is a little too late to start thinking about managing the risks associated with vehicle use.

Any thoughtful and thorough insurance broker would provide a strong employer recommendation to establish what would consist of an acceptable employee driving record. This criteria should be one of the conditions for employment, to be used at time of hire and periodically reviewed to make sure employees continue to qualify for their driving position.  This employment standard should also be in line with insurance company guidelines.

Along with this requirement, the driver must also demonstrate they have appropriate driving skills for the vehicle they will use in the course of business.

In California, the Department of Motor Vehicles (DMV) offers a service, called the Pull Program,” that will alert employers when a driver becomes involved in an accident and/or when a citation is given.  This should be an automatic procedure for all employers who rely upon employees to drive for them or when employees drive customer vehicles.

For some time, the DMV has prevented insurance brokers from sharing employee driving records with their employer clients.  This restriction caused employers to fully assume this task, and many employers found it to be too cumbersome to consistently perform.

This last week, there was a change in this DMV attitude and DMV will now allow insurance brokers to provide this service to employers.

Of course, there are many RisksNThreats that employers face in the operations of their business. Fortunately, this is a “no brainer” to address.

It is now easier for an employer to obtain this valuable information so they can better manage this risk and not be distracted from growing their business.

Reach out to me with your questions and comments: Tom Bone email: tbone@risksnthreatsmatter.com; office: 800-346-6216 x 8758; mobile: 925-285-6790.

A reminder to you:

The Sacramento Employer Advisory Council (SEAC), in partnership with EDD, will be holding a Sacramento workshop August 19, 2015. This program is for those employers who wish to learn the best ways to respond to employee complaints and to avoid potential legal entanglements that can result.  To learn more about this informative and entertaining event, please go to this SEAC website link to gain more information: SEAC Workshop – When an Employee Complains

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Contact

Tom Bone
Risk Insurance Advisor
ISU Insurance Services
2266 Lava Ridge Court
Roseville, California 95661
Phone 916.960.8758 or 800.823.4852 ext. 8758
Fax 916.773.4484
Mobile 925.285.6790
Email tbone@risksnthreatsmatter.com
License #0306692

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