With the third quarter of an unpredictable year upon us, fleet professionals are busy with recovery plans and saving initiatives to help their companies emerge from the pandemic shutdown poised for success. One area that’s always high on the cost evaluation list is driver risk mitigation.
There’s more than one kind of driver to consider when determining your company’s risk level for vehicle accidents. Obviously there are the fleet drivers – your employees driving your vehicles. You could also have employees who drive their personal vehicles while on the job for your company. Finally, there are the independent contractors or subcontractors who work out of their own business vehicles on your company’s behalf.
On the surface, these mobility options provide flexibility and cost control that may work well for your organization. However, there’s a great deal of risk if you’ve not taken measures to size up these drivers and communicate the company’s expectations to them.
Why? First, they may not have sufficient auto insurance to cover the cost of an accident. More importantly, when an employee or contractor causes an accident while driving a vehicle for your business, chances are you’ll be brought into a lawsuit. Then the courts will want to know if you knew this driver was likely to cause this accident, and if so, what you did to try to prevent it. That’s where you could get hit with a lawsuit for negligent entrustment.
What’s more, in the court of public opinion, the driver’s actions reflect the values of your organization. When your brand name is associated with the damage, your business’ reputation is at risk. When you lose your customers’ trust, you lose their loyalty.
You can see how one company addressed this problem. Read “Getting all drivers out of hot water with proper insurance coverage.” To get a quote, contact Holman Insurance Services. And as always, visit our COVID-19 Center for the latest industry updates and recovery resources.