Automobile Liability and Risk Control

It is usually very hard to avoid the risk of auto liability exposure. You can sometimes outsource this exposure by having other companies do your deliveries on your behalf. Even with that strategy, attorneys can sometimes connect you to your delivery system. So if the delivery system is faulty, it might come back to haunt you. So whether you are providing internally for your deliveries or if you have outsourced it to a third-party, you still need to apply sound automobile risk control principles to limit your exposures to loss.
One of the first steps has to do with the drivers. Driver selection is the primary key to reducing your overall liability exposure. Making sure that you only select drivers that meet the carrier’s minimum underwriting requirements will help ensure better success controlling your claims and losses. Checking motor vehicle reports and past claim history of the drivers is an important part of the underwriting. It is important that you train the drivers to make sure that the operations they perform are well within the insurance company’s guidelines and your company’s guidelines for performance. Training your drivers will only be successful if you have proper supervision of your drivers.
Next on the list of risk control has to do with the vehicles. Selecting your vehicles should be at the top of the list when it comes to risk control for auto liability. Selecting poor quality vehicles or vehicles that are not appropriate for your type of business can lead to unnecessary auto liability claims and losses. Once you’ve selected the appropriate vehicles for your company, you must have in place a routine and comprehensive inspection and maintenance program for all vehicles.
The last and final step has to do with the routing and scheduling of your vehicles. The times of day that your vehicles are on the road and the length of time your vehicles are on the road during any one delivery can have substantial impacts on the maintenance of your vehicles. This can also but undue stress on your drivers. The logistics of the delivery times and the delivery process of your goods and services can go a long way in making happy clients and happy employees. Unrealistic time restraints and demands upon your drivers and vehicles will in the long run cost you more. The risk management tip of the day is to apply risk controls for your auto liability with a risk control system for drivers, vehicles, and logistics.

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