Fleet safety is as easy as 1 - 2 - 3

Designing and implementing a quality risk management program doesn't need to be difficult, time consuming or expensive, regardless of how large or small your community is.

But you must understand how the services you deliver to your citizens can be adversely affected by accidents that are easily avoidable. When you understand the causes and effects of accidents, you can take steps to avoid future losses.

Municipal vehicle operation is a good example. Many cities ignore their auto loss exposure once they buy insurance. This is unfortunate, because insurance is a poor alternative to not having an accident in the first place.

Insurance covers only an injured claimant or the repair of your municipal vehicle. You are not compensated for the disruption in municipal services caused by having a vehicle repaired, being short staffed due to an employee's injury, or the administrative time spent on accident details rather than on productive services.

As you establish an automobile risk management program, pay attention to three areas:

• Driver selection and training,
• Vehicle maintenance, and
• A follow-up safety program.

1. Hire safe drivers:

Most job descriptions simply state that a valid driver license is required as a prerequisite for employment. Most employment applications simply ask if the applicant has ever been convicted of a crime other than a traffic violation.

Putting a poor driver behind the wheel of a municipal vehicle can be one of the costliest mistakes you make. An applicant's driving record must be considered as part of the hiring process. They should be questioned on their past driving experience, and motor vehicle records (MVRs) should be ordered to verify this information. Discrepancies should be questioned. MVRs on employees who regularly drive municipal vehicles should be ordered every two or three years.

The passage several years ago of the Commercial Motor Vehicle Safety Act makes it more difficult for a qualifying driver to conceal a history of accidents and violations. However, not all employee-drivers fall under this Act, so it's wise to develop your own criteria.

Drivers are more likely to be involved in traffic collisions if they have been involved in a past collision, or if they routinely violate traffic laws. Ordering MVRs on drivers who have admitted to past collisions or traffic tickets, plus spot checking the MVRs of other drivers, may make this activity less costly for your municipality.

2. Maintain your vehicles:

Auto insurance premiums are primarily influenced by the size, age and use of your vehicles, and the age of drivers. Implementing a formal fleet maintenance program will make your municipality especially attractive to an underwriter.

Your program should include organized, written records of all vehicle maintenance. Underwriters give more points to maintenance performed by independent, certified mechanics. If your city employs its own mechanics, their certifications should be kept current. Maintenance schedules should follow or exceed the recommended schedule in each vehicle's owner's manual.

Vehicles should be kept clean, and minor scrapes, dents and other vehicle wear and tear should be promptly repaired. If your vehicles look their best, your employee/ operators will have a greater sense of pride in operating them safely.

3. Follow up on any incidents:

Accidents do happen, despite our best efforts at prevention. When they do, we should take the opportunity to learn from them.

Municipal administrators should review all vehicle collisions and accidents not only with the involved employee/driver, but also with all employees. Review the circumstances that led to the accident, and discuss ways the accident could have been avoided or minimized. Invite feedback from other employee/drivers. They need to be part of the solution rather than believing they are being preached to.

Summary:

Purchasing insurance is the most common but least efficient method of managing your loss exposures. Increase the efficiency of your risk management program by implementing proactive, inexpensive risk management techniques. The result will be fewer losses, less expensive insurance and more control over your risk management budget.