Motor Fleet Risk Management:
Introduction to Fleet Safety Program
Brokers are often asked to provide Motor Fleet Risk Management advice. In this series of information broadcasts we’ll provide useful tips that can be shared with clients, or at least lead to some thought-provoking conversations.

Is the client serious about improving their fleet risk exposures by implementing a Fleet Safety Program?

Are they prepared to allocate resources - by way of time and/or money?

The cost benefit to the client must be considered. At its simplest, if the cost of motor insurance is being adversely affected by an above average number of accidents and subsequent cost, then potential cost savings from a Fleet Safety Program can be very easily identified. Their premium will go down if their accident rates improve.

It’s harder to identify savings if the cost of insurance is already at a very low maximum No Claims Discount rate. These clients may be interested to hear the story of a client of ours who is very respected, had a well maintained high quality fleet with an outstandingly good claims history, that unfortunately had a heavy vehicle involved in, thankfully, an injury free, but very high profile incident, that resulted in closing down one of the major tunnels in Sydney on a Friday afternoon. The front page press coverage and subsequent reputational damage was significantly controlled. The client was able to demonstrate, due to their Fleet Safety Program, the accident was not something that was inevitable and caused by a shonky operator, but an unforeseen human error.

Once it is established that the client is serious, the planning of an improved Fleet Safety Program can commence.

The Fleet Safety Program needs to be sensibly structured with consideration given to a range of variables. The size of the client's fleet, whether there is already in place the position of safety officer or fleet manager, whether there is a difficulty in sourcing good quality drivers, if there are any specific risks such as carriage of hazardous goods, have there been worse than expected losses.

The Fleet Safety Program can be as simple and low cost (just refining existing procedures or introducing a few procedures and checks), or as highly developed as required, and may involve external training or Quality Assurance consultants, and fitting of vehicle safety technology (dash cams, fleet monitoring systems).

As most fleets are SME who seek brokers advice, we will focus on low cost, simple initiatives that can help the broker add value.

The next update will include some inexpensive initiatives for clients to consider.

Based around a heightened awareness of a culture of safety, we will provide more detail on:
  • Appointment of a safety officer
  • Announcement of a Fleet Safety Program
  • License & offence print check audits
  • Driver declarations
  • Driver selection guidelines
  • Clean driving record incentives
  • “My driving is on display” signs on vehicles
  • Documented “use of vehicle” guidelines
  • Driver training courses
  • Dash cams
  • Fleet monitoring systems
  • Hands-free telephone technology
  • Drug & alcohol awareness programs
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