Getting all drivers out of hot water with proper insurance coverage
Does your business depend on employees that use their personal vehicles for business purposes, or subcontractors who work out of their own business vehicles? Even if these arrangements keep your operation moving, these drivers can unintentionally put your company at risk. But there’s a better way to protect your business, and offer value to your workforce at the same time.
An industry-leading plumbing and water damage restoration company regularly has 1,800 employees and contractors driving their own trucks or vans—and transporting their own tools—to job sites.
The company was confident in the best practices they had implemented for their own fleet vehicles through ARI. Next, for the non-company owned vehicles, they urgently wanted to address any and all drivers who did not have the appropriate insurance coverage. This way they could mitigate the risk of under-insured vehicles. But they wanted to do this in a way that did not cause friction between management, employees, and the businesses that handle the job-out work.
To start, the company worked with consultants at Holman Insurance Services to map out the various challenges already in motion relative to drivers, vehicles and risk. Here’s what they scoped out regarding the non-company vehicles:
- They were using a myriad of vendors for telematics technology, monitoring driver records, driver safety training modules, insurance, and third-party insurance compliance.
- There were a lot of unknowns, including vehicle make-up, driver profiles and driver training history.
- There was no compliance enforcement relative to corporate insurance requirements or their safety and driving policies.
Through this, the company gained visibility to the behind-the-wheel behavior of 1,800 drivers. The leaders are now accessing monthly reports on driver insurance and driver policy compliance.
Also, if the company chooses to take their fleet management solution further, they are now in the position to do so. They would be able to screen their drivers’ risk level continuously using MVR monitoring and/or telematics, and then reinforce a safety culture by assigning relevant driver training to improve identified shortcomings. When fleets integrate their risk mitigation efforts relative to driver safety, telematics and insurance, they can reduce their premiums. Uniquely combining the company’s centralized data with dynamic analytics, the fleet team has proof in hand of the power of their cost avoidance strategies.
In addition, the company’s drivers are receiving advice and support from Holman Insurance Services through a dedicated phone line, email and website. First the Holman consultants help each driver understand what level of insurance they currently have in place. Then, because Holman Insurance works with multiple carriers, they are able to offer drivers competitive rates and valuable savings—even for insuring their tools. Each driver receives a personalized insurance plan that not only meets their budget but also complies with the policy their company has established to protect everyone.
Today, this company’s drivers are each saving on average $1,900 annually in insurance premiums. Through their collaboration with ARI for fleet management and Holman Insurance Services to put best practices in place for mitigating risk on both their fleet and non-company vehicles, they are creating a better work environment for everyone. And with management no longer dealing with insurance compliance, they are focused on recruiting, retention, engagement; they are strengthening their organization’s productivity and customer satisfaction.
When procurement professionals don’t take ‘no’ for an answer, big results can happen
How procurement tricks-of-the-trade reduced this fleet’s total cost of risk