March/April 1991
Here are some simple suggestions for in-house programs to help avoid preventable accidents and keep insurance rates down.
Business vehicle accidents are more than just nuisances. Every business with company vehicles, whether they're part of a large fleet of trucks or include simply a handful of company cars, risks the heavy price of accidents: They can drive up insurance costs and cut profits.
No business is immune. Vehicular accident claims are second only to workers' compensation in frequency of insurance claims made by businesses today. While it is impossible to prevent all accidents, businesses can take steps to reduce both the number of accidents and the resulting costs
The majority of accidents are the result of human error. According to research conducted by the CNA Insurance Co. (Chicago), 70 percent of all business vehicle accidents occur when a company driver, while on the road, hits another object, usually a passenger car or stationary item.
Rear-end collisions are the most frequent type of accident and usually are a result of the driver following another vehicle too closely. Other common accidents reported by businesses include drivers backing into other vehicles or objects or running their vehicles off the road. Some less common business accidents result when objects fall from a company vehicle and strike a nearby car, and when drivers fail to observe clearances, fail to stop or yield, and improperly pass, change lanes, or turn.
Though most accidents result only in property damage, the few that cause bodily injury to drivers, passengers, or pedestrians can cause a heavy cost to businesses.
Develop a Safety Program
Clearly, businesses have a tremendous incentive to reduce the number of vehicle accidents they suffer. And the implementation of a well-designed safety program that involves both the drivers and plant managers is an excellent method of preventing accidents.
CNA Insurance, which provides coverage to recyclers through the Institute of Scrap Recycling Industries has developed guidelines to help businesses reduce accidents:
Make Auto Safety a High-Priority Management Policy. Management must make it clear that accident prevention is a top concern for everyone in the company and that all employees are expected to consider accident prevention a primary duty.
Select Drivers Carefully. The people behind the wheels of your business vehicles are the key to accident prevention. Hire the best possible drivers. Unfortunately, many employers feel that they cannot take the time to thoroughly investigate an applicant's credentials, including employment history and driving record. Find the time to complete this important task; the potential cost savings are too important to ignore.
Businesses should create an employment application designed specifically for drivers, emphasizing driving experience and safety. And supervisors should personally interview each candidate: The face-to-face interview is the best method of judging a driver's attitude and behavior.
Don't neglect the applicant's references. A phone call or written inquiry to a former employer can provide important information. In addition, you should check the driver's record with the state motor vehicle authority.
Consider requiring a physical exam for drivers. Exams provide reasonable assurance that the applicant can physically perform what can be a demanding job. The U.S. Department of Transportation's motor carrier safety regulations include a description of what such an exam entails.
Driving tests--both written and behind-the-wheel--are important, too, particularly for businesses using large vans or trucks. These tests demonstrate the applicant's knowledge of traffic rules and ability to handle the vehicle.
Implement a Driver Training Program. This should include an orientation to the company's rules and procedures.
Involve Supervisors in the Safety Program. The drivers' supervisors are a vital part of any safety program. They should be held accountable for the safety performance in their areas. Supervisors also should receive safety training.
Encourage Open Communication Between Drivers and Managers. This may be the most important component in your safety program. Let drivers know what is expected of them; they depend on you for direction. At the same time, listen to their concerns and suggestions.
Investigate Every Accident. Understanding the causes of an accident can help to eliminate or reduce future accidents. Many businesses have been able to determine how and why accidents happen by creating an accident review committee to examine all business-related accidents and determine how they could have been prevented. Based on their findings, the committee can recommend measures to decrease the number of accidents.
Establish a Vehicle Maintenance Program. Although mechanical failure accounts for only a small percentage of accidents, a preventive maintenance program can reduce the number of accidents, hold down future maintenance costs, keep your fleet of vehicles at full strength, and improve driver morale.
Create a Driver Recognition Program. Nothing motivates employees more than recognition for a job well done. A program that rewards drivers with outstanding safety records will lift morale and encourage drivers to become more safety-conscious.
Award programs can take many forms: a bonus for the driver with the best safety record, a dinner for employees who meet their safety goals, a safety plaque or trophy, even a weekend trip for employees and their families.
Teach Defensive Driving Techniques. Even the best drivers will sometimes forget to follow fundamental safe-driving techniques. These techniques should be reinforced as often as possible to avoid accidents. Urge your drivers to do more than obey traffic laws; encourage them to drive defensively. Remind them of the basics of good driving: yielding to oncoming traffic, obeying speed limits, slowing down in bad weather, and so forth. Require drivers to perform routine safety checks on vehicles before taking them on the road.
Check the Rules
In addition to the safety programs you develop, you may have to comply with state and city vehicle safety standards. Check with your local transportation department for rules your fleet should follow.
Despite any precautions you take, sooner or later business vehicle accidents will occur. No safety program can prevent every accident. But businesses can avoid unnecessary accidents by implementing relatively simple safety techniques. And those safety programs can translate into cost savings.•
Editor's note: For further information on CNA's vehicle safety programs, contact the CNA Insurance Co., CNA Plaza--9 West, Chicago, IL 60685.
Here are some simple suggestions for in-house programs to help avoid preventable accidents and keep insurance rates down.