Business

Why A Fleet Management Program Is Essential For Your Business

Written by Alyssa Newton, CIP
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Row of commercial vans

Whether your fleet is your main business application or an incidental part of your commercial activities, fleet management is essential to maintain safety, efficiencies, organization and profitability within your company.

 “The best preparation for tomorrow is doing your best today.”
― H. Jackson Brown, Jr.

Here are a few general areas to invest time and thought to aid in making your fleet a success:

Fleet Safety Policy: Create a fleet management program that includes documentation and tracking of data, employee/driving training, and timely reviews tied to professional expectations and key performance indicators. This will help set expectations when an experienced driver is first hired and properly vetted with reference checks and MVR reviews and assist in following through with the set standards. Continue to protect your fleet by including orientation and ongoing training for your drivers. Your company should have documented criteria to determine what an acceptable driving record for operating company vehicles is. Quarterly employee reviews–while logging hours, requirements and checks–are helpful to provide constant communication between operators and management.

Vehicle Maintenance: Regular upkeep and scheduled maintenance on your fleet vehicles is a great example of doing something today to secure the benefits tomorrow. Continuous care is shown to reduce unexpected repair costs and increase life expectancy on parts and equipment. Making sure to follow a documented preventative maintenance program will assist with vehicle upkeep.

Accident Reporting Procedures: Have a step-by-step process on what to do in the event of a claim. The procedure should begin before a claim even occurs, such as having necessary documents easily accessible in vehicles, and end with the conclusion of the loss review should an incident occur.

Possible steps include:

  • Calling HR or a manager
  • Co-ordinating with a preferred tow truck/repair vendor for pick up at a predetermined storage location
  • Contacting the insurance broker and carrier to set up a claim
  • Confirming any injuries followed by medical attention and support
  • Reviewing how the loss could have been prevented or lessened

Driver Management: A common factor leading to loss is distracted driving. An entire module should be dedicated to prevention, training, and tracking this issue.

A loss manager can provide great tips and help design a program to dissuade and lessen the possibility of distracted driving.

An example would be a cellphone protocol–there are mobile applications available that will disable certain cellphone functions while a commercial vehicle is in operation, allowing any size fleet to have enforced usage rules to reduce distracted driving losses and minimize risk exposure.

After every driving loss, a review needs to be done by the appropriate people to try and prevent a similar claim from occurring again. This should include a “mitigation meeting” between HR, the involved driver, fleet manager and any other involved parties. Even in the event of a not-at-fault loss, there is always something that can be learned from the scenario–whether it is defensive driving techniques or protocol on how to handle the aftermath of the loss.

A good fleet management program begins with company culture and is built on the support of management. Investing time, effort and discipline into keeping up with the program and safety standards may be more work up front but long-term benefits will develop with persistent effort.

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About Alyssa Newton, CIP

Assistant Director, Personal & Commercial Insurance Since joining Unica in 2015, Alyssa has transitioned roles and departments to her current position of Corporate Underwriting Specialist. Alyssa has an Insurance Diploma from McKeil School of Business and was awarded the 2016 Top Graduate CIP Award for the Hamilton/Niagara Chapter. Alyssa has a passion for understanding Personal and Commercial risks and thrives on making processes efficient and organized, while still looking for creative ways to maintain profitability.
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