Although most commercial fleets self-insure or have large deductible programs for their fleet to cover vehicle damage, most carry commercial general liability insurance for bodily injury or property damage caused by their company vehicle or employee.
Fleet management is a complex job; it requires a little forward thinking, a little anticipation, and maybe a crystal ball to help you see the future.
The resale value of a used vehicle is determined by three factors: the unit’s age, total mileage, and overall condition. A used company vehicle in poor condition, because of driver abuse or neglect, will result in lost resale value or incur unnecessary reconditioning expense at auction. Here's what you can do to minimize vehicle abuse.
At one time, the scope of the fleet department’s responsibilities was crystal clear. However, over time these demarcation lines have shifted and departmental boundaries separating them have become fuzzy. Now, collaboration with sourcing, legal, HR, finance, sales, service, and environmental, health & safety (EHS) is needed, often requiring approvals or buy-in from individual departments. There is only one strategy fleet managers can adopt in this new world of fleet management and here it is.
Ergonomics and operator safety is a growing concern by HR and risk management departments, since there has been an uptick of workers’ compensation claims by fleet drivers. As a result of strong trends in the upfit market, there is an increased focus on designing upfits to enhance operator safety.
Fleet managers have to deal with other department managers who may not be team players or who have egos the size of a Class 8 truck. As a result, there are the inevitable fleet-related interdepartmental conflicts, typically driven by the challenge of balancing HR/driver requirements versus finance/accounting department requirements, which are often at odds with one another. Some criticize this involvement of “non-fleet” managers, rather than seeking ways to partner with them.
Does automatic payment of a photo-enforcement ticket implicitly presume guilt and deny a driver due process? Some fleet drivers have been cited for running a red light and had the fine paid, all without ever knowing about it or given the due process opportunity to contest the citation. In addition to possible due process concerns, an employee may have a claim for wrongful termination if your failure to provide notice of the infraction ultimately cost the employee his or her license.
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