Feb 14, 2024

Fleet Management: Protecting Your Operations on the Road

vehicle driving with sun glare ahead, Protecting your fleet on the road

    Fleet Management: Protecting Your Operations on the Road 

    If your business relies on a fleet of privately owned vehicles, it’s essential to ensure the safety, management, and proper insurance of that workforce. Protecting your fleet means protecting your operations. 


    Owned and Non-Owned Vehicles 

    Opting not to own or lease a fleet of vehicles can save your business complications and funding. Many companies encourage or incentivize their employees to use their personal vehicles for work purposes. When this is the case, ensuring the proper auto insurance coverage is in place becomes a top priority. 

    The safety and reliability of your fleet must be confirmed whether or not your business owns the vehicles being used. Before you send your employees out on the road, you must ensure their capability as safe and responsible drivers.  


    When am I liable? 

    Your business can be held liable for a costly claim in the event of a traffic incident with a non-owned vehicle being driven by an employee if proper personal coverage is not in place. Your employees should have sufficient coverage on their own to meet the costs of a potential incident. If not, you, the employer, may be held responsible for what is then referred to as a “vicarious liability.” 

    In this regard, the Insurance Information Institute advises, “To protect your business from these liability risks, you can add a non-owned auto liability endorsement to your business auto coverage form (BACF). This BACF coverage is excess over the limits provided by the employee’s personal auto coverage. If the employee’s limits are lowsuch as only to satisfy state financial responsibility limitsthen it is critically important for the business to have this non-owned auto protection.” 


    Reducing risk and managing liability 

    No matter the size of your fleet, the readiness and responsiveness of your employees should be verified. To achieve this, your company policy may prohibit employees from driving their personal vehicle for business purposes until certain requirements have been met, such as the completion of a driver safety checklist, training, or evaluation of the driver’s MVR. 

    Learn more about an MVR here.

    An MVR is a state-issued summary of past moving violations and police-reported collisions. This report can be obtained directly from a state Department of Motor Vehicles (DMV) or through a private firm in the business of providing personal information. You should notify your employee and get their consent before requesting and examining the report. Failure to know your employees’ driving history may increase your business’ exposure risk and potential for lawsuits. 

    As a business owner, it’s your duty to ensure you are placing safe and responsible drivers on the road to conduct your business. Knowing your fleet is trained, insured, and carrying a clean driving record is essential.  


    Protecting Your Fleet

    For more questions on protecting your fleet, readying your safety for the road, or obtaining an MVR, you can contact our team of expert Risk Advisors at Morris & Garritano. We’re here to help.

    What "covered" should feel like.

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