Employee Transportation

Employee Transportation Defining and reducing the risks

Topics • What are the risks? • What if there is an accident? • What if we use a third party? • What is a Fleet Safety Program? • Vehicle Safety

Defining the Risks • Your workers compensation policy has exposure in each of these cases. • Group transportation of temporary employees to a worksite by your company. • Group transportation of temporary employees to a worksite by a third party (van service). • Assignments in which temporary employees might be driving or riding in a vehicle for work purposes (truck drivers). • Full time staff driving for work purposes (salespersons, risk managers, branch mangers, clerical staff, etc.)

Defining the Risks • With group transportation – it’s a numbers game. • If you are providing group transportation for fifteen employees to a job site. • There is the potential that fifteen employees will be hurt at one time. • That is fifteen reportable injuries. • That is fifteen emergency room visits. • That is fifteen claims reported to your carrier. • That is fifteen ________.

Accident – Not at Fault • If the accident is another driver’s fault: • Workers compensation insurance would likely pay the initial cost. • Workers compensation insurance would then subrogate against the liability portion of the driver’s automobile policy. Until these funds are recovered, the losses will remain on your history affecting loss picks, experience modifiers, etc. • If the liability portion of the automobile policy does not cover all of the costs, then the carrier will go to the next level (company umbrella policy, company itself, individual, etc.). • Any costs beyond that would likely be covered by your workers compensation policy.

Accident – At Fault • If the accident is your employee’s fault: • The workers compensation policy would cover all of your injured employees. The losses will not be recovered and will remain on your loss history. • Injured people that are not your employees would be covered by your automobile liability policy. • If the injuries to the other people exceed the automobile’s liability policy, then the costs would move to the next level.

Third Party Transportation • Does this reduce your workers compensation exposure? It depends… • Did you require the employees to ride in the vehicle? • Did you tell the employee to get in the vehicle? • Did you charge the employees a fee to ride in the vehicle? • Were your employees in the “Course and Scope of Employment?” • Regardless, in almost every case your workers compensation policy will have exposure.

Third Party Transportation • Third party transportation • Conduct initial site evaluations as if they were clients. During these evaluations review if they: • Have regularly documented vehicle checks. • Have safety rules for their drivers. • Conduct MVR checks. • Review CDLs. • Evaluate their drivers and have a standard policy. • Have adequate insurance coverage. • Review these issues on a regular basis.

Fleet Safety Program • A fleet safety program is designed to prevent and reduce the impact of vehicle accident losses such as: • Injury to employees and the public • Loss of productivity • Loss of equipment • Negative image

Fleet Safety Programs • Key Elements • Management Responsibilities • Vehicle Operator/Driver Responsibilities • New Driver Selection Process • Motor Vehicle Records (MVR) Evaluations • Requirements for Commercial Drivers License (CDL) • Accident Reporting Procedures

Management Responsibilities • Check MVRs (Motor Vehicle Record) pre-employment. • Check and maintain employee MVRs at least annually. • Establish and maintain company procedures and safety rules. • Ensure employees adhere to company procedures and safety rules. • Maintain a vehicle inspection and maintenance program. • Support driver training programs.

Vehicle Operator/Driver Responsibilities • Possess a valid operator’s license. • Follow ALL motor vehicle laws. • Follow ALL company procedures and safety rules. • Follow ALL accident procedures. • Conduct pre-trip inspection of vehicles. • Notify management of vehicle problems.

Safety Rules

Vehicle Maintenance

New Driver Selection Process • Have applicants complete the regular hiring process. • Verify current drivers license. • Obtain MVR from states of residence for at least the prior three years. • Drug test all employees driving company vehicles. • For drivers of non-company owned vehicles, verify insurance and minimum levels of coverage.

Motor Vehicle Record (MVR) Evaluations • Obtain MVR from states of residence for at least the prior three years. • Evaluate the MVR according to established, minimum company standards. • MVR checks should be conducted on all drivers at least annually. • Employees with “borderline” MVRs should be issued a written warning. • Employees with unacceptable MVRs should have their driving privileges revoked. • Checking MVRs is important due to “negligent entrustment” liability concerns.

Prevention – Driver Evaluation Form

Requirements for Commercial Drivers License (CDL) • Any combination of vehicles with a gross weight rating of 26,001 or more pounds, providing the gross vehicle weight rating of the vehicle being towed is in excess of 10,000 pounds. • Any single vehicle with a gross vehicle weight rating of 26,001 or more pounds, or any such vehicle towing another not in excess of 10,000 pounds. • Any vehicle, regardless of size, designed to transport 16 or more persons, including the driver. • Any vehicle required by federal regulations to be placarded while transporting hazardous materials.

Accident Procedures • The operator should remain at the accident scene for a police investigation and report. • The operator should immediately notify the manager. • The manager should immediately notify the insurance carrier. • Sources of information • Drivers Report of Accident • Police Investigation Reports • Insurance Investigation Reports • Witness Statements • Diagrams and Photographs

Vehicle Safety – General • Don’t tailgate • Obey the three second rule • Use turn signals • Maintain appropriate speed • Use your mirrors • Adjust your speed to the conditions • ALWAYS WEAR SAFETY BELTS

Vehicle Safety – Vans • The National Highway Traffic Safety Administration (NHTSA) cautions not to overload the vehicle. • More passengers onboard means a greater chance for rollover. • Rotate drivers to reduce fatigue. • Cargo on top of the van changes the center of gravity. • Most accidents are caused by quick and sudden maneuvering. • ALWAYS WEAR SAFETY BELTS.

Any questions? • Thank you!

Employee Transportation