Best Practices for Fleet Management

A contractor’s commercial auto fleet can be essential to the success of their business. To help minimize vehicle downtime, lengthen asset lifespan, and reduce the frequency and severity of accidents, it is important to consider fleet management best practices, including driver selection, training, and fleet maintenance.
December 21, 2023 | Contractor
By: Keri H.
Keri has over 20 years of experience insuring contractors, both on the agency side and the carrier side. She holds the Construction Risk Insurance Specialist designation from IRMI and is a member of the Construction Customer Focus team. Helping insure contractors properly and providing education to help them run their businesses better is one of the ways Acuity dares to care about our agents and policyholders. Keri is passionate about educating agents and policyholders because education is often the first step in a relationship and sets the foundation for success.

Author of Contractor Focus

A contractor’s commercial auto fleet can be essential to the success of their business. To help minimize vehicle downtime, lengthen asset lifespan, and reduce the frequency and severity of accidents, it is important to consider fleet management best practices, including driver selection, training, and fleet maintenance. 

 

Driver Selection

The first step in hiring skilled drivers for your business is to establish parameters for acceptable age, experience, and driving record. 

 

Age

  • Because younger drivers (16–19) have generally been driving for fewer years than older drivers, they may be more likely to be involved in an at-fault accident. 

 

Experience

  • Today, many individuals are choosing to delay when they obtain their driver’s license. A 21-year-old driver who was licensed at 20 has less experience than a 19-year-old driver who was licensed at 16. Ask how long a driver has been licensed rather than just assuming they began driving at 16. 
  • When recruiting and selecting drivers, it is important that the driver have experience with the type of vehicle you expect them to drive. Two years of experience on heavy weight and specialty type vehicles should be the minimum requirement. For example, someone may have a commercial driver’s license and experience driving a dump truck, but that does not mean they are the best choice for driving a garbage truck. 

 

Driving Record

  • Not all drivers have perfect driving records. Businesses should have a written protocol regarding violations and what is acceptable. Checking a driver’s MVR prior to hiring and comparing it against your acceptable criteria is important because, in the event of an at-fault accident, you may need to demonstrate that you hire drivers of a certain experience level. However, using driving records in your hiring decisions has legal consequences, so be sure to discuss appropriate procedures with an attorney experienced in employment law. 
  • Driver records should be checked at least annually and include appropriate disciplinary action for drivers who experience violations or at-fault accidents. Disciplinary action could be a verbal warning, written documentation in the employment file, loss of driving privileges, and/or termination. 
  • Your independent agent may be able to assist you with developing driver acceptability guidelines that are consistent with your insurance carrier’s guidelines.

 

Training

Once drivers are deemed acceptable and hired, they should be trained regularly on topics such as:

  • Defensive driving, including:
    • Not following too closely
    • Avoiding distracted driving (drivers who text while driving are 23X more likely to be involved in a car accident!)
    • Not speeding 
  • Recognizing and responding to road rage
  • Healthy habits, including avoiding fatigue

 

Offering safety incentives can help reinforce training topics and encourage defensive driving.

 

Fleet Maintenance

  • Older vehicles are more likely to have maintenance concerns than newer vehicles, but not everyone can update their fleet every five (or even every ten) years, which is why it is important to establish and follow a regular maintenance schedule.
  • Whether you use an outside mechanic or have one on staff, be sure you have guidelines for acceptable experience. If using an outside mechanic, be sure they can maintain your vehicles on your schedule and that they carry general or garage liability insurance. If you want your vehicles protected for property damage while they are maintaining them, ask about garagekeepers direct damage coverage.
  • Safety devices such as GPS, cameras, or telematics are helpful for monitoring vehicle location and how employees are driving. These devices can also be helpful in proving who is at fault in an accident.
  • Pre- and post-trip inspections are not just for truckers. Whenever an employee takes your vehicle somewhere, they should complete a pre-trip inspection and then do another inspection when they return the vehicle for the day. 
  • It is important to lead by example. Even if you are the executive supervisor and drive a sedan to the job site, let your employees see you doing a pre-trip inspection on your vehicle. Employees are more likely to adhere to safety protocols if they see management doing it too. 

 

Why? 

By establishing and following driver acceptability guidelines, providing comprehensive training, and being conscientious about fleet safety and maintenance, you will protect your company’s reputation as well as your bottom line. Maintenance costs money, but failure to maintain costs more. Maintaining equipment regularly and performing pre- and post-trip inspections identifies concerns before they become accidents and regular maintenance keeps your vehicles on the road working for you longer. 

 

Establishing a comprehensive driver and fleet management program is the first step. The next steps are to monitor the program and make adjustments as needed. Having a program but not monitoring or enforcing is worse than having nothing at all. 

 

Need help?

Use Acuity’s resources. Policyholders can access safety materials and videos on our website. They also have access to Acuity loss control representatives—safety is their job and they want to share their expertise with you!

 

For more information on fleet and driver safety, contact your independent agent or visit www.acuity.com. By demonstrating a willingness to implement new safety protocols, your agent can negotiate better insurance rates and terms for you than for your peers who do not have the same. 

By: Keri H.
Keri has over 20 years of experience insuring contractors, both on the agency side and the carrier side. She holds the Construction Risk Insurance Specialist designation from IRMI and is a member of the Construction Customer Focus team. Helping insure contractors properly and providing education to help them run their businesses better is one of the ways Acuity dares to care about our agents and policyholders. Keri is passionate about educating agents and policyholders because education is often the first step in a relationship and sets the foundation for success.

Author of Contractor Focus