Construction Fleet Safety: Your Blueprint for Managing Costs & Risks

My rates continue to increase 20-30% every year. What controls can I put in place to make the insurance companies more comfortable about my operation?

Operational best practices, or controls include: A fleet safety program with policies and procedures, a driver selection process, driver training, annual driver performance reviews, driver incentive programs, an accident investigation program, event recorders and/or telematics, and a maintenance schedule/equipment program.

Also note to be proactive, and do not wait for insurance quotes to act. Continuous improvement in safety and risk management is always important. In a hard market, underwriters generally put less weight on brand new, recently implemented or planned future improvements. More weight is given to the steps you have already taken and successfully implemented.

How can we promote safety and control the behavior of drivers in personal vehicles?

You can leverage telematics and annual/monthly driver reviews. The use of a “driver agreement” can also reinforce expectations and safe driving practices. When an employee is driving their personal vehicle, your standards for safety, driver behavior and accountability should match the guidelines for your owned fleet -- including phones, texting and other distractions, speeding, seat belts and training.

We hire subcontractors for our transportation needs, and we don’t have a commercial fleet. Do these issues apply to our business?

Yes. Every company pretty much has a fleet exposure. Whether it is the role of a salesperson, project manager or estimator, there is someone driving for the purpose of business at a construction company.

At most companies, do telematics and/or video recording differ for upper managers vs. heavy drivers or field drivers?

It varies by the company. Some place a lower priority of putting telematics into management vehicles since they are typically logging fewer daily hours behind the wheel (compared to heavy/field drivers). Some contractors put them into every owned vehicle, even cars they have for salespersons that are infrequently used.

Does HUB offer the technology that was addressed in the webinar?

Yes. We have access to event recorder, telematic and other technology solutions that can help improve driver behavior and performance. Please work with your local HUB advisor to connect with a HUB Risk Services consultant to request more information.

Do you need the employees permission to run a MVR?

Yes. When taking the steps to obtain an MVR, it is imperative that you require current employees and prospective employees to be aware of the process. The most important part of the MVR collection process is to ensure that you have obtained the signed and dated MVR Release Form.

Do I need to have all of my employees sign an MVR release each year? Or is the one I already have valid for a certain period of time?

The MVR release/consent varies by state. You’ll need to verify with your state what the requirements are for an employer to obtain the MVR. There also may be an option to have ongoing authorization by having an employee sign a form that states that.

You mentioned going back 7 years on MVRs. What if a potential driver/employee has a DUI from a long time ago?

A point system may be considered to determine whether a driver's history is acceptable. After a certain number of years, a DUI or other violation should “fall off” of the point system. A minimum of 3 years is recommended with 7 years being best in class. Also, develop an MVR Tool for at hire and annually based on employee performance.