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iNews Articles 2010

Wellness Awareness

Glossary of Terms

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Business Auto Policy -5-

Risk Management Strategies

The five most important steps to minimize the likelihood of the most common claims filed under a Business Auto policy are:

1. Conduct driver training: Expecting a person to safely drive a 12-passenger van or regularly transport groups of vulnerable clients without extensive driver training is not realistic. Drivers should be trained on proper backing, lane changing, mirror usage and dealing with loud or disruptive passengers. Some insurance carriers will provide this training.
   
   
2. Conduct Motor Vehicle Report (MVR) screening: When screening job applicants for positions that require extensive or regular driving for your nonprofit, consider including a MVR check as part of your screening process. Some suggestions for securing the MVR are as follows: (a) you can require that applicants bring the most recent MVR to the interview; (b) you can determine whether your auto insurance company will pull MVR's for you; (c) you can implement a process whereby you obtain MVR's on applicants and existing employees on a systematic, ongoing basis. If you decide to use this tool as part of an overall screening process, you must first establish criteria that will disqualify an applicant or employee from driving for your organization. Failing to do so before you review MVRs will needlessly complicate your screening process and result in the case-by-case review of driving records. This approach can increase the possibility of inconsistent treatment of applicants, which exposes your organization to discrimination claims.
   
   
3. Maintain your vehicle: Properly maintaining a vehicle is important for a number of reasons. First, the auto will last longer. Second, it will be more dependable and a safer means of transporting your clients. Third, complete maintenance records can help your insurance company defend a claim against the nonprofit organization that alleges the nonprofit was negligent in the operation and ownership of the auto.
   
   
4. Require pre-trip inspections: Any time a vehicle is being used, require an inspection. Some vehicles, such as buses, trucks or large vans may only be used periodically. Key safety equipment may be nonfunctioning. Drivers should use a checklist as a reminder to check head lights, break lights, horn, windshield wipers and fluid, tire pressure, signals and other features that should be in working condition before every trip.
   
   
5. Provide guidance on post-accident response and procedures: Every person driving on your behalf should be briefed on your accident response policies and requirements. For example, consider providing an accident form and requiring that it is kept in the glove compartment of vehicles used for the nonprofit. Instruct drivers on how they should respond and who they should notify and within what time frame, if they have an accident. Most insurance companies will provide this information for you. You may want to add your list of procedures and contact names. Remember, injuries incurred by an employee while driving a vehicle on the job are claimed under workers' compensation. Colorado statutes define a procedure to be followed when an employee is injured.

The staff at Nonprofit Resources has many years of experience helping organizations to determine the appropriate coverage. Give us a call if you would like to talk with us about our insurance programs.

Let us address one of your questions!