Managing risks is a crucial part of operating any business, but especially for one that relies on its vehicles. With roughly a total of 2021 motor vehicle fatalities in Canada, having your business take its business out on wheels means exposing it to the potential risk that a driver of one of your company vehicles could get into a wreck, causing injury or damages to other parties and to the vehicle that your business has likely invested tens of thousands of dollars in.
Whether your company owns a fleet of delivery trucks, runs a taxi service, or simply has employees driving their company cars, having the right commercial auto insurance policy is only the first step in a much larger, and rather complex risk management strategy. To safeguard your business vehicles and employees and assets, you need to implement the best practices to maintain a solid insurance record and minimise your odds of risk.
In this article, we will explore a range of the best practices for auto commercial insurance policyholders. Incorporating these into your business operations may ensure reduce premiums, help you proactively mitigate risks, and ensure a smooth claims process (if something does happen.)
Practice no. 1: Driver Training & Safety Programs
One of the most effective ways to mitigate risks associated with commercial auto insurance is by implementing comprehensive driver training and safety programs. Properly trained drivers are more likely to make informed decisions, respond appropriately in challenging situations, and reduce the likelihood of accidents.
Consider the implementation of comprehensive driver training programs. Develop programs that cover topics such as defensive driving techniques, accident prevention, road hazards, and the importance of adherence to traffic laws. Offer both initial training for new hires and ongoing training for existing drivers, to refresh their skills and keep them current.
Make sure you conduct regular safety meetings and refresher courses. This will ensure that everyone is up to date and knowledgeable on new safety measures. Make sure to offer refresher courses on defensive driving and other relevant topics to reinforce safe driving practices.
Practice no. 2: Regular Vehicle Maintenance
Proper vehicle maintenance is a critical aspect of risk management for commercial auto insurance policyholders. Regular maintenance helps ensure the safe and efficient operation of vehicles, minimizes the risk of breakdowns or accidents due to mechanical failures, and extends the lifespan of your fleet (or your one or two vehicles – however your business runs.)
Establish a routine maintenance schedule for all your company-owned vehicles. Develop a maintenance schedule that includes regular inspections, tire rotations, fluid checks, and other necessary maintenance tasks. Adhere to the manufacturer’s recommended maintenance intervals and consider the requirements of your vehicles based on their mileage and usage.
You may also want to have staff perform pre-trip inspections to identify potential issues before hitting the road, especially for longer tips. Keep accurate maintenance records and always address any issues that arise as promptly as possible to avoid breakdowns and accidents.
Practice no. 3: Utilizing Telematics Technology
Advancements in technology have provided commercial auto insurance policyholders with powerful tools to enhance risk management efforts. Telematics devices, which combine GPS technology and onboard diagnostics, can provide valuable insights into driver behavior, vehicle performance, and overall fleet management.Some insurers will offer telematics programs not only to track the behaviour of your employees while behind the wheel, but to also reward good driving behaviour with discount incentives.
Telematics can also help you to assess your employees’ performance, monitoring things like excessive speeding, aggressive acceleration, or harsh braking. Using telematics data can help you to identify areas of concern, such as specific routes or times of day, and allow you to implement strategies a little more proactively.
Practice no. 4: Regular Insurance Reviews
Finally, don’t overlook the importance of regular insurance reviews.
Insurance alone is not enough to fully protect your company vehicles. By implementing practices like the ones mentioned in this article, you can go the extra mile to protecting your company vehicles – and have insurance as a fallback if the worst does occur. Insurance is an addition to your various practices as an auto commercial insurance policyholder, not a standalone plan.
Auto insurance is mandatory in Quebec, but optional coverage for your fleet may help you to go a little further in protecting your assets. We recommend doing an annual or semi-annual policy review in the presence of an insurance broker to help you determine what the best move is for your insurance coverage, where you may be potentially vulnerable, and how to go about getting properly insured.
LMBF’s brokers will be happy to over your insurance with you to ensure you have the best coverage for your business.
Insuring Your Company Vehicle (in Blue)
Insuring your commercial or company vehicles in Quebec is an obligation, not only to yourself and to the longevity of your business, but to your employees and your clients. It’s an investment in the long-term life of your business, yes, but also in the reputation of what you do. How will your clients depend on you unless they know you’re willing to do what it takes?
LMBF works hard to be a renowned insurance broker in Quebec, and has been a trusted provider of comprehensive insurance solutions for over 50 years. Our clients have nothing but an excellent experience with us, whether that’s in acquiring person or commercial insurance, and getting covered in blue is only just a matter of making a few clicks.
