The popularity of delivery services continues to rise and expand to new industries. Many companies may face yet another new challenge – risks to consider when offering delivery services. Industries like retail or restaurants that are new to providing delivery services as a part of their business model need to establish a safety program to manage this exposure.  While delivery services allow companies to increase income, there are many risks to consider.  Even if employees will be driving their own personal vehicles, your company could still be liable for incidents that happen during deliveries.  Here are the best practices to implement related to auto exposures for delivery services:

  • Driver Selection/Authorization
    • For any employee that will be driving on company business, their driving record (MVR) should be reviewed for potential red flags.
    • The MVR should be reviewed periodically to ensure that the driver maintains a good driving record.
    • Clearly define the number of violations an employee/driver can have before losing the privilege of driving for work, and provide training where indicated.
  • Driver Agreements 
    • Establish a contract with all employees who drive for work purposes, whether they drive assigned company vehicles or drive their personal vehicles.
    • By signing an agreement, the driver acknowledges awareness and understanding of the organization’s traffic safety policies, procedures, and expectations regarding driver performance, vehicle maintenance, and reporting of moving violations.
  • Vehicle Use and Insurance Requirements
    • Set minimum required car insurance for all employees who operate vehicles as part of the workday.
    • As a general rule, companies should not let their employees on the road without carrying a minimum coverage of 100/300/50. Best practice would be a 250/500/100 policy.
  • Accident Reporting and Investigation
    • Establish and enforce a crash reporting and investigation process.
    • All crashes, regardless of severity, should be reported to the employee’s supervisor as soon as feasible after the incident.
    • Company traffic safety policies and procedures should clearly guide drivers through their responsibilities in a crash situation.
    • All crashes should be reviewed to determine their cause and if the incidents were preventable.
    • Understanding the root causes of crashes and why they are happening, regardless of fault, forms the basis for eliminating them in the future.
  • Vehicle Selection, Maintenance, and Inspection
    • Selecting, properly maintaining, and routinely inspecting company vehicles is an important part of preventing crashes and related losses.
    • It is advisable that the organization review and consider the safety features of all vehicles to be considered for use.
    • Vehicles should be on a routine preventive maintenance schedule for servicing and checking of safety-related equipment.
    • Personal vehicles used for company business are not necessarily subject to the same criteria and are generally the responsibility of the owner. However, personal vehicles used on company business should be maintained in a manner that provides the employee with maximum safety and reflects positively on the company.
  • Training Program
    • Provide continuous driver safety training and communication. Even experienced drivers benefit from periodic training and reminders of safe driving practices and skills. It is easy to become complacent and not think about the consequences of our driving habits.

Be sure to reach out to an MMA advisor for additional assistance.

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