Small businesses using company vehicles are obligated to carry commercial auto insurance to protect themselves and others.
Since commercial policies purchased from an auto insurance agency can be more expensive than most personal policies, it is beneficial for business owners to be very strict on how those vehicles are used and operated to keep the premiums down.
In the effort of avoiding penalties and getting the lowest insurance premiums possible, insurance agents recommend that business owners practice these safe driving tips.
- Invest in Safety Features - When purchasing company vehicles, insurance agencies recommend spending a little extra to invest in the safety features that can prevent accidents and save money in the long run. Buy the right vehicles for the job, then teach employees how to properly operate them and make use of onboard safety features.
- Develop A Company Driving Protocol - Document rules on how company vehicles are to be used and provide a copy to every employee. Prohibit the use of company vehicles for personal tasks, prohibit employees from texting while driving or driving while impaired, and others. Set mileage limits for company vehicles based on the trip and create protocols on how to handle accidents and breakdowns for insurance purposes.
- Properly Maintain Company Vehicles - Reduce the chance of breakdowns and dangerous accidents by keeping company vehicles up to date on all scheduled maintenance and making necessary repairs promptly.
- Monitor Employee Driving - Reduce bad driving behavior and save on insurance premiums by installing driver monitoring devices in company vehicles and informing employees about them. Insurance agents find that when employees understand that they are being monitored, they are less likely to drive dangerously or ignore company rules on the use of work vehicles.
- Insist on Driver CE If Available - Some industries require drivers to keep up with Continuing Education training and specialized driver’s and operator’s licenses. Insist that all employees driving company vehicles have and maintain these qualifications and training. Not only will it reduce the chance of an accident with a company vehicle, but it could also qualify the business for a discount with a commercial auto insurance agency.
Running a business comes with many risks.
Small business owners can mitigate some of those risks and prevent rising insurance premiums by following safe driving tips for handling employee vehicles.
Talk to a local commercial auto insurance agent about these and other safety practices that can keep employee drivers safe and protect businesses from the losses associated with injuries, property damage, and other accident liabilities.