1. Key Principles in Fleet Safety Management
Fleet Safety Best Practices
Key Principles in Fleet Safety Management
Risk Control
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2. Disclaimer
This program or presentation is only a tool to assist you in managing your responsibility to maintain safe premises, practices, operations and equipment, and is not for the benefit of any other party. The program or presentation does not cover all possible hazardous conditions or unsafe acts that may exist, and does not constitute legal advice. For decisions regarding use of the practices suggested by this program or presentation, follow the advice of your own legal counsel. Travelers Indemnity Company disclaims all forms of warranties whatsoever, without limitation. Implementation of any practices suggested by this program or presentation is at your sole discretion, and Travelers Indemnity Company or its affiliates shall not be liable to any party for any damages whatsoever arising out of, or in connection with, the information provided or its use.
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3. VEHICLE CRASHES No. 1 cause of workplace fatalities.
Vehicle Crash Injuries average 3 times the cost of other workplace injuries.
Annual fatalities from vehicle crashes exceeds 42,000.

4. When Could My Company Exposed to Auto Losses?
Examples:
Company owned vehicles when on business.
Company owned vehicles used for personal business.
Employee owned vehicles used on company business.
Rented vehicles used for company business.

5. Historical Examples Personal Use - Owned
Hit and run fatality – 16 year old pedestrian
Employee drinking on company premises, then went bar hopping in company pickup. Drank 12 more beers in 4 hours
Court awarded $1,500,000 to the family

6. Historical Examples Personal Use - Owned
Owner’s son crosses center line, head on fatality
Son has history of moving violations, is enrolled in Methadone Clinic program
This was seen as indefensible in court
$500,000 to settle

7. Historical Examples Non-Owned Vehicle Construction site out of town
Needed supplies
Gave keys to 16 yr. old summer employee
Employee made “U” turn on interstate highway
Pile-up, serious injuries

8. Auto Liability Legal Issues
Theories of Liability for Commercial Auto include:
Respondeat Superior
Negligent Hiring
Negligent Entrustment

9. Respondeat Superior "let the master answer” An example:
Gary, an employee of the RTL Co., driving his own vehicle on business goes through a red light severely injuring the other party. He and RTL are being sued for $1.2 million.

10. Negligent Hiring Examples
Hiring a driver with a poor MVR
Hiring a driver whose license is suspended or revoked
Hiring a driver without conducting past employment inquiries
Allowing someone to drive when fatigued or after consuming alcohol
Not addressing known drug or alcohol problems

11. Negligent Entrustment
The entrusted (employee) is incompetent, inexperienced, or reckless.
The entrustor knew, or had reason to know, the entrustee’s condition.
The entrustment created risk to someone and the entrustor had a duty to that person.
The negligence of the entrustee was the proximate cause of the harm to the injured person.

12. Owned Vehicle - Negligent
Driver w/ 40,000 lbs of sand ran red light
Speed limit 45, but driver had been bragging he could make all lights at 62 - no shifting
Took out 4 vehicles, 3 fatalities (including expecting mother) severe brain damage to 5 yr old child
Driver has 6 prior accidents KNOWN TO COMPANY
Driver not injured- claim at $5,000,000

13. The Fleet Manager Asks, “How Can I Control the Losses from the Fleet?”

14. The Fleet Manager Asks,
The Owner of my company wants to know if the vehicle safety program is a good investment?
What should I tell him?

15. How Much Does an Auto Accident Cost?
$10,000 Auto Repair
$56,000 WC Costs
$78,000 Additional Costs
$1,000,000 Auto Liability
$2,500,000 Umbrella

16. Key Principles of Fleet Safety
We consider Key Principles of Fleet Safety in most any type of fleet to be:
A Management Commitment to Safety
A Comprehensive Transportation Safety Program
An Investment in Employees
A Continuous Improvement System

17. Key Principles of Fleet Safety
A Structured Fleet Safety Program Defines:
The Fleet Safety Management Organization
Procedures for Safe Vehicle Operation
Fleet Safety Rules.

18. PRINCIPLE 1: Management Commitment to Safety
Includes:
A Fleet Safety Mission Statement
Organization for Fleet Safety
Responsibility
Accountability

19. PRINCIPLE 1: Management Commitment to Safety
A Fleet Safety Mission Statement
Written.
Communicates management's support.
Reflects the company's vision, values, and mission.
Is simple and explicit.

20. PRINCIPLE 1: Management Commitment to Safety
Organization for Fleet Safety
Managers responsible for fleet safety are included as a part of the company's overall safety organizational structure.
A structure is in place to report safety hazards to management.

21. PRINCIPLE 1: Management Commitment to Safety
Responsibility:
Safety performance standards exist for all employees involved in fleet operations.
Accountability:
Vehicle accident costs are charged back against the responsible manager’s budget.
Corrective action policies and procedures are predetermined, widely published, and enforced.

22. PRINCIPLE 2: A Comprehensive Fleet Safety Program
Key Components Should Address:
Policy and Procedure Manual for All Vehicle Operations
Written Safety Rules
Accident Reporting and Investigation
Equipment Inspection and Maintenance
Written Vehicle Selection Standards
Cargo control

23. PRINCIPLE 2: A Comprehensive Fleet Safety Program
Policy and Procedure Manual for All Vehicle Operations.
All branch locations operate under same manual.
Non-owned vehicle controls are equivalent to the level of controls for owned vehicles.
Risk transfer methods, such
as Certificates of Insurance
or Additional Named Insured.

24. PRINCIPLE 2: A Comprehensive Fleet Safety Program
Written Safety Rules
Are current and widely distributed.
Have been reviewed by legal counsel.
Are reasonable and understandable.
Drivers acknowledges receipt of rules

25. PRINCIPLE 2: A Comprehensive Fleet Safety Program
Some Sample Vehicle Safety Rules
Vehicle inspection requirements
Seat belt use
Vehicle and cargo security procedures
Rules prohibiting speeding and radar detector use
Rules prohibiting drug and alcohol use

26. PRINCIPLE 2: A Comprehensive Fleet Safety Program
Sample Vehicle Safety Rules
Restrictions on personal use of company vehicles
Restrictions on unauthorized passenger and drivers
Restrictions on use of cell phones while driving
Accident response and emergency procedures

27. PRINCIPLE 2: A Comprehensive Fleet Safety Program
Fleet Safety Rules
Alcohol use is the #1 cause of traffic fatalities; almost half of all highway deaths
Policy should specifically forbid operating company vehicles after drinking

28. PRINCIPLE 2: A Comprehensive Fleet Safety Program
Fleet Safety Rules
Be prepared to remove poor drivers from operating any vehicle on behalf of your company
Failing to do so may be NEGLIGENT ENTRUSTMENT

29. PRINCIPLE 2: A Comprehensive Fleet Safety Program
Accident Reporting and Investigation
All accidents are reported and investigated.
Solutions are developed and implemented to prevent recurrences.
Accident investigators are trained.
Periodic review of accidents and incidents to identify trends.
Corrective action procedures for preventable accidents are written, widely distributed, and consistently applied.

30. PRINCIPLE 2: A Comprehensive Fleet Safety Program
Inspection & Maintenance
Written maintenance program exists.
Procedures meet manufacturer's recommendations.
Vehicles are kept in safe mechanical condition.
All inspections and maintenance are documented.

31. PRINCIPLE 2: A Comprehensive Fleet Safety Program
Inspection & Maintenance Should Address All Equipment:
Owned Cars, Vans, Trucks, Busses
Owned Trailers, Dollies
Non-owned Employee Personal Vehicles With Business Use
Rental and Hired Units

32. PRINCIPLE 2: A Comprehensive Fleet Safety Program
Written Vehicle Selection Standards
Written standards exist that include safety features.
Standards are approved through team effort of all affected parties.
Standards are periodically assessed by team for improvement.

33. PRINCIPLE 2: A Comprehensive Fleet Safety Program
Cargo Management
Packaging and handling procedures meet or exceed regulatory or industry standards.
Likelihood of fire, explosion, spills is minimized.
Packaging and handling failures are investigated.

34. PRINCIPLE 2: A Comprehensive Fleet Safety Program
Cargo Management (continued)
Solutions are generated to decrease chance of recurrence.
Cargo is properly secured to prevent spills, damage in transit, or shifting loads which could affect the safe operation of the vehicle
Passenger transportation includes procedures for safe loading, unloading,
and transport of persons

35. PRINCIPLE 3: Driver Investment
Driver Selection Procedures
Driver Training 
Driver Incentive and Motivation
Driver Wellness

36. PRINCIPLE 3: Driver Investment
Driver Selection Procedures
Written, Systematic Driver Selection Procedures Are Consistently Followed.
Written Job Descriptions Identify Key Driving Skills And Knowledge Required.

37. PRINCIPLE 3: Driver Investment
Selection criteria* could include:
Minimum Age Requirement
Written Application
Reference Check
Credit Check
Criminal History Check
 MVR
 Physical
Drug & Alcohol Testing
Interview
Road Test
 All Checks & Tests
Documented
*Should include legal review

38. PRINCIPLE 3: Driver Investment
Driver Selection
Driving record (MVR)
Experience
Background checks
Meet DOT requirements if applicable

39. PRINCIPLE 3: Driver Investment
Driver Selection
Establish minimum age and driving experience criteria
Establish driving record criteria
More than 3 moving violations or two preventable accidents in a 3 yr span
Or DUI, Hit & Run, Reckless in 5 yrs

40. PRINCIPLE 3: Driver Investment
Three Types of Driver Training:
Initial - At hire general orientation
Remedial – Addressing driver specific issues
Focused – Addressing driver pool trends

41. PRINCIPLE 3: Driver Investment
Driver Training Should Be:
Effective.
Based on needs assessment of skill, knowledge, and attitude.
Periodically assessed via a review & improvement process.
Documented.

42. PRINCIPLE 3: Driver Investment
Driver Incentive & Motivation
Increase Tenure And Experience.
Tool To Stabilize Driver Pool.
Reduces Turnover Associated Expenses.

43. PRINCIPLE 3: Driver Investment
Driver Incentive & Motivation
Driving behavior/record influences Performance Bonus determination.
Company vehicle upgrades linked to driving performance record.

44. PRINCIPLE 3: Driver Investment
Driver Wellness
Management Is Proactive In Improving Driver’s Health.
Instruction Is Given To Drivers On Proper Diet To Lessen Driver Fatigue.
Proper Exercises For Drivers Has Been Demonstrated.
Incentive Plan to help drivers achieve goals of driver wellness.

45. PRINCIPLE 4: Fleet Safety Continuous Improvement System
Loss Trending & Analysis
Internal Benchmarking & Auditing
Scheduling Review
Regulatory Compliance Review

46. PRINCIPLE 4: Fleet Safety Continuous Improvement System
Loss Trending and Analysis
Total accident frequency rate
DOT recordable accident rate
Trends by cause of loss, driver tenure, division, etc.
Severity trends

47. PRINCIPLE 4: Fleet Safety Continuous Improvement System
Internal Benchmarking & Auditing
Comparisons monthly, annually
Comparisons by terminals, facilities, fleet groups, etc.
Losses per miles driven, loss cost per mile, losses per 100 vehicles

48. PRINCIPLE 4: Fleet Safety Continuous Improvement System
Results Measurement
Reduced losses
Lower turnover rates
Increased operational efficiencies
Lower SAFER SEA numbers
Fewer roadside DOT fines
Reduced maintenance costs

49. PRINCIPLE 4: Fleet Safety Continuous Improvement System
Regulatory Compliance Review
Driver files - medicals, mvrs, etc.
Maintenance files - annual inspection
Drug and alcohol random testing rates

50. PRINCIPLE 4: Fleet Safety Continuous Improvement System
D.O.T. Regulations
Is your company in compliance with D.O.T. regulations as applicable?
Federal DOT regulates vehicles over 10,000# GVWR or GCWR
What steps need to be taken?

51. The End