Best Practices for Managing Insured Business Fleets 

Operating motor vehicles for business purposes involves significant risks, regardless of your organization’s experience or how careful your drivers are. These risks are amplified when your company owns and operates a fleet of vehicles, as more vehicles mean greater potential for loss. While insurance is essential, it shouldn’t be your only line of defense. Implementing sound fleet management practices is key to minimizing risks and protecting your employees, vehicles and bottom line.

What Risks Does My Fleet Face?

Your fleet’s risk profile depends on your business operations. For example, a school bus company entrusted to ferry children to school and drive through residential neighborhoods may face different challenges than a shipping company using semis to traverse long distances. However, many fleet risks are universal, such as third-party liabilities, vehicle damage and employee safety.

How Can My Business Manage Fleet-related Risks?

As your organization evaluates how to control fleet-related exposures, consider the following key risk management strategies:

• Driver education and training—An exhaustive driver safety program, including teaching and reviewing defensive driving tactics, should be a top priority. Consider offering incentives for safe drivers and implementing telematics to track behavior behind the wheel.

• Vehicle maintenance—If your vehicles are not in optimal condition, it could significantly increase your risk of accidents, roadside breakdowns, missed deadlines and costly delays. Establish a stringent maintenance and inspection schedule and maintain detailed records.

• Compliance—Laws and regulations pertaining to commercial vehicles can vary by location and operational details and may be subject to legislative changes. Make sure you’re staying apprised of all relevant requirements to avoid fines and potential shutdown orders.

• Insurance—Even if you’ve already secured appropriate fleet insurance, your needs and coverage options may change over time. Revisit policies at least every year, with additional reassessments made following major changes in your organization, such as adding large clients, adjusting operations or opening a new location.

We’re Here to Help

At McCartan Insurance Group in West Des Moines, Iowa, our knowledgeable and dedicated team can help you understand your fleet’s risks and manage them appropriately. Contact us today to learn more or compare personalized commercial auto insurance quotes.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.