RISK MANAGEMENT & INSURANCE – WHAT HAPPENS DURING "OFF HOURS" COUNTS TOO! J AME S N. HANNA , CPCU, CIC, ARM, A A I & ERI C F I SCHER
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ECENTLY OUR OFFICE HAD TO DELIVER some unfortunate, and expensive, news to a fuel dealer who wanted
to work with us. The most competi- tive carriers we wanted to place them all declined to quote, and the next best option was thousands of dollars more for comparable coverage. What was the reason several quality
insurance carriers were not interested in this account? Poor losses… no. Location… nope. Stricter underwriting guidelines… not that either. It was the Motor Vehicle Record (MVR) reports on their drivers and infractions that occurred when they were off the job. There were no major accidents, no run-
ning red lights or DUIs. The employer's drivers had a chronic issue with seat belt violations, using cell phones while driving and other relatively minor offenses. But just like nickels and dimes add up to dol- lars, several small violations add up to a larger problem and that problem cost one company over $10,000.
In an industry where your service relies
almost exclusively on driving to your cus- tomer's location, (i.e. have many vehicles and drivers) owners sometimes fail to real- ize that what their drivers do in their off hours not only directly impacts the cost of the business insurance, but is also a warn- ing sign that should not be missed. The Insurance Institute for Highway Safety, through their many years of collecting and analyzing driving data, has drawn a direct correlation between convictions on driv- ing records and accidents. Studies have shown that someone who
has had just 1 driving conviction is 1.7 times more likely to have a crash. A per- son with 4 driving convictions is 3.1 times more likely to be involved in a crash and 8 driving convictions is almost 5 times more likely get in an accident1. What this means to an employer is very simple – you need to monitor the driving record of your drivers regularly. Further, drivers should be required to sign a statement giving the employer permission to obtain MVRs and a
MVR review should be conducted as part of your pre-employment screening process, annually for everyone and more frequent for those with marginal records. Safety should always be stressed in the
workplace, but often we forget that what happen during the off hours can count too. Monitoring your drivers MVRs, both on and off the job, is important to not just keep your insurance costs down, but to lower the risk of on the job accidents that can cost much, much more. The Cotgreave Insurance Agency, the
largest family owned insurance agency in Long Island and in business for over 40 years, specializes in providing insur- ance and risk management to the fuel oil industry. For quotes, questions or policy reviews contact Eric Fischer (efischer@get- insured.com) or James N. Hanna (jhanna@ get-insured.com) at 631-981-5400 office, 631-981-5448 fax.
1.
Driver' Crash, Violation Records Predict Future Crash Involvement, Advisory Number 6 August 1988. Insurance Institute for Highway Safety
