Loss Control Insights

Controlling Losses Through MVR Monitoring

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Need a good reason to check your drivers’ motor vehicle records (MVR)? Here are 500,000 of them. According to the National Highway Traffic Safety Administration, the cost per crash with a single fatality is $500,000 or more! To help prevent these costly accidents, EMC Senior Engineer Jim Stotser encourages commercial policyholders to regularly check MVRs.

A comprehensive fleet safety program is critical to your overall safety program, whether you operate a delivery company or are a contractor. Regularly checking your drivers’ MVRs is a key element of that comprehensive fleet safety program.

Violation-Free Drivers Are Safe Drivers
You reduce the likelihood of accidents if you employ good drivers. Checking your drivers’ MVRs can reveal these types of moving violations as well as insurance lapses, license revocations and DUI charges. Always check when hiring new drivers and, at a minimum, annually for any employees who operate company vehicles. This also applies to family members of employees who are authorized to operate company vehicles.

Establishing Qualification and Disqualification Criteria for Drivers
The first step to reducing accidents is to establish qualifying or disqualifying criteria for MVRs. EMC developed Fleet Safety Program Templates that contain criteria guideline recommendations for both DOT-regulated fleets and nonregulated fleets. EMC underwriters use these same guidelines when reviewing your list of certified drivers to determine which drivers will be covered under your commercial auto policy and which may require a separate rider because of their MVRs.

Develop and Implement an MVR Policy
An MVR policy should also be established and followed closely to prevent accusations of federal and/or state discriminatory hiring practices. The policy should clearly state what action will be taken if the MVR reveals moving violations. In the case of prospective drivers, an offer of employment may not be extended; for current employees, they may be placed on probationary period or their employment may be terminated. The MVR policy should also include company notification instructions involving moving violations.

Checking MVRs Is Due Diligence for Reducing Accidents and Losses
Monitoring your drivers’ MVRs is an important step in reducing the chance of an accident and improving your organization’s loss experience. Consider MVR monitoring as due diligence for assuring that your drivers meet the standards you have established for safe performance of their jobs. Whether you are checking the MVR of prospective drivers or current employees, you must get their written permission to review their records. Various companies can obtain MVRs and often your insurance agent can assist you with this service as well.

Authorized Driver Lists
DOT-regulated fleets must maintain specific information on drivers in a driver qualification file; however, nonregulated fleets are not bound by this requirement. This doesn’t imply that nonregulated fleets should not keep basic driver information. EMC requests a driver list be provided on at least an annual basis that includes the name, driver license number and address of all employees authorized to drive company vehicles. Anytime drivers are added to or deleted from the list, an updated list should be sent to your insurance agent.

Remember, monitoring MVRs is just one element of a comprehensive fleet safety program. Count on EMC® to help you keep roads safe and losses low by assisting you with a comprehensive toolbox of services and resources.