Risk management for fleet owners

By managing the risks involved in operating a fleet of vehicles, the owners and operators of these businesses will be able to better control costs. This is done by reducing, removing and avoiding the problems that arise from the interaction of elements that are labelled as risks. If implemented correctly, the number of fleet accidents and thus insurance claims will fall. The fall should result in a reduction in your business fleet insurance policy. 

Where are the risks for fleet owners?

From one perspective, it has been noted that risks are all around us. For fleet owners, this includes three areas of risk.

  • When vehicles are on the road.
  • When vehicles they are not on the road.
  • Owning and being responsible for the vehicles.

Reducing risks on the road

Reducing the risks to vehicles when they are on the road as part of a business function is possible. To do this requires that the vehicles be maintained properly so that there are no accidents caused by a malfunctioning vehicle. This is accomplished by having a proper maintenance schedule in place along with daily and weekly inspections of each vehicle. To make sure no vehicle slips through the creases, records of all maintenance and activities should be recorded.

Qualified low risks drivers should also be employed to operate the vehicles on the road. This reduces road risks when the vehicles are being utilized on public roads. In the past, this was verified by only looking at the operator's driving record. Today, the business owner can place telemetric devices in the vehicles that provide a record of just how each operator drives the vehicles. This can include but not limited to black boxes and dash cams.

Reducing the risks when the vehicles are idle.

When the vehicles are in the yard, the reduction of risk is all about safety and security of the business premises. The business property should have a barrier like a fence or a wall running along the perimeter to keep unwanted visitors out. There should be sufficient lighting to illuminate the yard after dark, along with a security system or guards to keep the place under 24-hour surveillance.

How owners can reduce the risks associated with their vehicles

By owning fleet vehicles the responsibility of all of them being in compliant with the rules, laws regulations and standards falls on your shoulders. Not being in compliance can lead to fines and suspension of licences issued by the government. By reducing or eliminating these risks, money will be saved.

Risks are all around us no matter what time of day it is. By identifying the risks associated with your business, they are easier to handle and remove or reduce their impact on your business as a fleet owner.

For more information, there is saving money with fleet insurance along with what is fleet management to help you reduce the risks in your fleet.

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