Effective auto fleet management is crucial for businesses that rely on vehicles for their daily operations. Whether your company owns a fleet of vehicles or employees drive their personal cars for work purposes, implementing best practices can lead to significant cost savings, improved safety, and enhanced efficiency. In addition, insurance companies have cracked down on their criteria when considering who is insurable.

My colleague, Larry Poague, recently covered what you need to know when it comes to personal vehicle use on the job. For purposes of this blog, I’ll focus on managing an auto fleet, with a special focus on liability and insurance considerations for employees who drive company-owned vehicles.

Auto Fleet Management Best Practices

When it comes to your auto fleet, there are several key best practices to follow.

Regular Maintenance and Inspections

It’s important to implement a routine maintenance schedule to ensure all vehicles are in optimal working condition. Regular inspections can prevent breakdowns, reduce repair costs, and extend the lifespan of the fleet.

It’s a great idea to use fleet management software to keep track of maintenance schedules, service records, and repair history.

Driver Training and Safety Programs

Ensure you’re conducting comprehensive training programs for all drivers, emphasizing safe driving practices, defensive driving techniques, and the importance of adhering to traffic laws. Also, promote a safety-first culture by rewarding drivers with clean records and no incidents.

Establish Criteria for Qualified Drivers

Consider pulling the Motor Vehicle Records (MVR) for your drivers annually — either manually or with a purchased software. Many companies are surprised to learn their insurance company is not required to pull the MVRs, so can’t be relied upon to do this with regularity. This means you, as the employer, are responsible for tracking the MVRs of your employees.

You can also use a grading sheet to determine if someone is an acceptable driver. This helps avoid negligent entrustment in the event of a claim.

Telematics and GPS Tracking

Have you started using telematics yet? You can use telematics and GPS tracking systems to monitor vehicle locations, driver behavior, and route efficiency. This data can help optimize routes, reduce idle time, and improve overall fleet performance. In today’s world, liability often finds the larger company with deep pockets. This technology is more likely to help your case rather than hurt it.

With this, you can also set up alerts for speeding, harsh braking, and other unsafe driving behaviors to encourage better driving habits.

Clear Policies and Documentation

It should go without saying, but I’ll do so anyway. It’s critical you develop and communicate clear policies regarding the use of company vehicles and driving for business, including guidelines for personal use, authorized drivers, and reporting procedures for accidents or violations.

Ensure all your drivers are aware of and comply with these policies and keep accurate records of all fleet-related documentation. Using your company handbook and requiring employee signatures is helpful for record keeping.

Company-Owned Vehicles Taken Home by Employees

When it comes to company vehicles that employees take home, there are several liability and insurance considerations to take into account:

• If employees are allowed to take company-owned vehicles home and use them for personal activities, establish clear guidelines to regulate such use. This may include restrictions on who can drive the vehicle, permissible personal uses, and procedures for reporting any incidents.
• Provide comprehensive auto insurance coverage for company-owned vehicles, including liability, collision, and comprehensive coverage. Ensure that the policy explicitly covers personal use by employees.
• Discuss the exposure for Uninsured/Underinsured motorist coverage. If employees will have passengers in company-owned vehicles, this could be an uncovered exposure.

Don’t Take Your Foot Off the “Best Practices” Pedal

When it comes to your business, implementing best practices for auto fleet management is essential for maintaining efficiency, safety, and cost-effectiveness in your business operations. By focusing on regular maintenance, driver training, and the use of technology, you can optimize your fleet’s performance. Additionally, addressing liability and insurance considerations for both personal and company-owned vehicles ensures that your business is protected against potential risks. Clear policies, adequate insurance coverage, and ongoing monitoring are key to successful auto fleet management and reducing liability risk.

If you’d like to talk more about this or have us review the policies and procedures you have in place, just reach out. We’d love to talk with you!