FLEET AUTO RISKS
Telematics Captures Viable Data
roads. Traffic infrastructure degrades
with the passage of time. Stress, driver
fatigue, aggressive delivery quotas, and
road rage can spur irrational behavior.
Distractions such as text messaging and
cell phones can divert drivers’ attentions,
increasing road risks.
“Drive” is a crime drama movie about a Hollywood, Calif. stunt per- former who moonlights as a getaway driver. Actor Ryan Gosling plays the main character, who finds that the act of driving offers both opportunities and risks. Companies and their risk managers
increasingly reach the same conclusion.
Many companies own motorized vehicles, ranging from a handful to hundreds or
more. These certainly make it easier to conduct business. Often, they are an employee
“perk” or benefit. With benefits, though, come risks. Accidents and collisions involving
company vehicles can exact a heavy toll. Physical damage to company vehicles is expensive to fix. Downtime from repairs and damage can erode a firm’s productivity. Employee injuries from company vehicle accidents can spawn workers’ compensation claims
and detrimentally impact productivity. Third-party liability claims—both for property
damage and bodily injury—can create devastating financial consequences in the form of
settlements, awards, and higher insurance premiums.
While fleet vehicle risks and accidents have been present since the invention of the
car, they seem more acute now. Increasingly, drivers compete for space on congested
Payoffs from Managing Fleet
Companies that adroitly manage fleet
vehicle risks can enjoy a competitive advantage in their market space. In the grim
aftermath of airplane crashes, a search invariably occurs for the “black box” that
will reveal what really happened. Captured flight data enable experts to pinpoint the cause of a crash and to, hopefully, prevent future mishaps. It is a risk
management tool in aviation.
What, however, if there was a way to
equip a company’s fleet of automobiles
with something like a black box? This
would transmit information—not just
about crashes, but other “intel” about
company vehicle use, data that management could use to promote safety and
curb risks? In fact, such technology is
now increasingly available in the form of
Reducing the frequency and severity
of fleet car or truck accidents can benefit
companies in many ways:
E Preserve business personal property
and save money otherwise spent on the
E Save time and money spent dealing with
automobile and truck liability claims.
E Minimize downtime—loss of use—
from having vehicles out of commission
due to collision damage.
E Eliminating sizable workers’ compensation expenses due to injuries incurred by
company drivers hurt in accidents arising
out of and in the course of employment.
E Lowering group medical expenses due
to injuries incurred by company drivers
hurt in accidents occurring off the job,
outside of employment.
E Improve insurance terms from having
a relatively “clean” loss and claims his-
tory when time comes to shop that part
of one’s coverage.
E Avoiding property damage to and inju-
ries on behalf of third parties.
E Promoting the image and substance of
corporate safety to public constituencies.