You do not have to be behind the wheel to be a part of the moving and storage industry. No matter what type of vehicle it is, owning and operating vehicles as part of a commercial business creates substantial risk. Accidents, while not wished for, are bound to happen. Fortunately, there are effective ways that companies can minimize their risk and lower their chances of accidents and expensive claims on their moving insurance for their company.
According to a study conducted by the Department of Transportation (DOT), drivers with a history of accidents and moving violations are more likely to continue driving this way – thus, posing a threat of risk to an organization that may choose to employ said drivers. Those with 8 convictions on record are nearly 5 times more likely to have a subsequent accident.
How can companies protect against this risk?
Organizations can utilize Motor Vehicle Records (MVRs) as part of the driver screening and hiring process. Together with a written policy for the moving and storage company, an MVR program can be administered by HR effectively.
What does an MVR entail?
An MVR should always include:
1. Obtaining: Who is covered under the policy? This includes all members of your staff who operate commercial vehicles, personal vehicles or even rental vehicles.
Once a prospective employee has been determined to be covered under the MVR policy, he or she should provide all accident and violation information on his or her application for employment. Throughout employment, all employees should be required to keep this up to date. This can be a form created by your company to track, or you may choose to obtain a sample form online.
2. Evaluating: Violations are generally classified as major (serious), minor and non-moving. There are also preventable and non-preventable accidents. Be sure to evaluate all violations and accidents, not just those which have occurred during employment or on the job.
To adequately evaluate, you may choose to create controls to meet your company’s needs and exposures.
3. Applying : Prior to implementing an MVR policy for existing employees, your HR department needs to evaluate the responsibilities for implementation.
4. Documenting: All MVR policies should include guidelines on how your company will retain records of applications, release forms, the MVR itself, violations, annual reviews and other warnings and actions as they relate to the MVR.
Remember, MVRs should always be obtained:
• Prior to employment
• Annually from all drivers
• Following an accident
Many companies may also want to consider evaluating an MVR more frequently for drivers who have marginal records. It is always better to be proactive and stay on top of things to avoid dramatic increases in movers insurance rates.
If you are considering an MVR policy at your company, Wolpert Insurance can help. We are always willing to provide examples, look over your existing documentation and provide guidance for implementing a new policy. All you have to do is give us a call!