motor fleet insurance best practice

Motor Fleet Insurance for Movers: Best Practice

In the moving and storage industry the job of managing your company fleet of vehicles—worth anywhere from a few thousand to millions of pounds—can seem to some like a major task involving an overwhelming host of management, health and safety, financial and legal obligations all related to your vehicle fleet.

As a fleet owner, it’s your responsibility to make sure that your employees licenses are valid, that each vehicle is covered appropriately under your policy and that you can add or remove vehicles from your policy with ease to coincide with your business’s needs.

Fortunately, with a bespoke motor fleet insurance policy you do not need superhuman strength to manage your business’s vehicles. Compared to standard motor insurance policies, the average motor fleet policy is much more responsive and flexible, making your job easier by reducing driver restrictions and allowing you to regularly make adjustments to your policy.

Implementing a motor fleet risk management strategy can help to keep your maintenance and depreciation costs low and reduce the chance of issues that can impact on your insurance premiums or disrupt your business.

Below we’ve put together our broker’s best practice tips on managing your motor fleet and risk management…

Carry Out a Fleet Risk assessment

Although the process will vary slightly according to your business needs, the five basic steps for analysing your business’s risks are listed below and should be the bedrock of any organisation’s risk management programme:

1. Identify the hazards.
2. Determine who might be harmed and how.
3. Evaluate the risks and decide on precautions.
4. Record your findings and implement a plan of action.
5. Monitor and review the plan.

Following these steps can help you isolate and eliminate your business’s biggest risks.


Survey Your Fleet & Invest in Improvements

Where appropriate, motor fleet insurers employ specialist fleet surveyors tasked with performing a more in-depth analysis that identifies significant problem areas and provides recommendations.

In these circumstances, insurers will provide surveys under the condition that the insured complies with the survey’s findings. Any resources the insurer expends on surveys are expected to be recouped via the insured’s survey-compliant improvements and subsequent reduction in claim costs.

Because fleet surveys are more extensive and detailed, business owner and manager investment is central to success. Unless owners and managers are ready to support and embrace improvement initiatives spurred by the survey’s findings, the fleet survey will probably not achieve all of its objectives.

Develop and Promote a Positive Health and Safety Culture

Fleet vehicles are classed as workplaces under the the Health and Safety at Work Act, and therefore must be maintained to the same high safety standards in order to protect your employees and ensure the maximum safety for other road users.

Use the results from your risk assessment and fleet survey to streamline processes and promote a positive health and safety culture amongst your staff. Apply the recommendations to your business management controls such as managerial structure, general processes and drivers’ handbook.

Typical management controls which dictate how your fleet runs should include topics such as working hours and conditions, health and safety awareness, driver code conduct (covering the use of mobile phones whilst driving), driver vehicle management, accident procedures as well as general good driving practice.

Establish a driver selection and review process to get the best results

Adding new drivers to your motor fleet is one of the most regular updates you are likely to make to your policy. Therefore the quality of your drivers can have a big impact on your moving business. It is imperative that your company establishes a driver selection programme to hire the best, most qualified drivers to ensure the safety of others on the road and your company’s good reputation.

As a fleet manager you will need to find the right balance between incentives and disciplinary action in order to maintain fleet management best practice. Company policy should be clearly communicated to employees and may include incentives for drivers based on performance, fuel consumption and safety, along with regular spot checks and reviews to keep drivers alert to your fleet management policies throughout the year.

Implement Efficient Accident Reporting Procedures

Drivers on the road represent your company and they need to be prepared to act appropriately in the event of an accident. Reporting the incident to your insurer as soon possible after an accident or breakdown will ensure the issue is fixed quickly and reduce the chances of legal action.

Supply your drivers with an accident kit in their glove box which includes emergency contact numbers, Accident Report Forms, a pen and paper to record the details. Remind drivers to take a photo of the damage with their mobile phone as a good first step in helping to document the events of the accident. Investing in and installing cameras in fleets can be amazingly helpful in settling disputes over accidents and reducing claims, which in turn may reduce your premiums over time.

Managing your business’s motor fleet and driver risks can feel like trying to hold water in the palm of your hand—no matter how many good practice procedures you put in place some risks slip through the cracks.Trust the insurance professionals at Reason Global Insurance Limited to help you create an effective motor fleet risk management strategy and find you the perfect insurance policy that comprehensively covers all your needs.

Contact us via email today to start bolstering your business »