Understanding Risk on the Road

As much as you’d like to assume safety is always top of mind in the construction industry, it’s important not to take anything for granted. Because of the construction industry’s variable nature — transporting various types of cargo, traveling unfamiliar routes, driving under challenging road conditions and using different vehicles — construction fleets are uniquely prone to vehicular accidents. These are among the costliest causes of business injury claims and can be detrimental to your company’s financial standing and reputation. In the past several months, accidents involving commercial fleets have been subject to record-setting nuclear verdicts (court-determined settlements of over $10 million), costing some businesses as much as $1 billion. But that’s not the only risk facing your fleet on the road.

Many industry vehicles can be susceptible to roadside inspections and violations, depending on their gross weight, improperly secured cargo and poor maintenance. With traffic deaths on the rise and roadside inspections occurring more often, now is the time to ensure that safety is a priority in your fleet management program to reduce the risks of large legal bills. The following are some preferred practices to help you reassess your fleet management program and protect your drivers and your business.

Hire Qualified Drivers

Road safety begins with hiring the most qualified commercial vehicle drivers. Whether they’re first-timers or experienced, remember to follow the Federal Motor Carrier Safety Administration (FMCSA) requirements outlined in Part 391. Check back each year to make sure you follow the most up-to-date regulations. Current regulations require a driver to be at least 21 years of age, read and speak English well enough to competently accomplish the job, be physically qualified and able to safely operate the vehicle they’ll be driving, hold a current valid commercial driver’s license (CDL) issued by their state of residence, provide a list of any violations on their driving record and successfully complete a road test or equivalent demonstration of skills. If the driving demands or types of vehicles you use vary significantly across your construction operation, create a selection profile for each need. The profiles allow you to establish hiring criteria to ensure a new hire has the skills required to operate the vehicle safely and responsibly.

As part of the qualification process, your hiring team should consider compiling a 3-year driving history for all drivers. Additionally, consider establishing a standardized interview to minimize your potential exposure to discrimination claims, and to help you identify the best candidate. Although labor is currently in high demand across the country, being selective about who you hire is crucial to road safety.

Set High Standards for Road Safety

After recruiting and hiring high-quality drivers, providing them with a formal set of safety standards can help mitigate your risk of accidents. At a minimum, your written fleet vehicle safety program should include the following:

Fleet safety statement — Set the standards for safe driving, including traffic laws, weight restrictions, vehicle markings, daily vehicle and cargo inspections and accident reporting procedures.

Motor vehicle record (MVR) authorization forms — Require each employee to sign an authorization form.

• MVR checks — Order an MVR before hiring an employee and review it every 2 years.

• Training — Set your safety expectations and teach safe driving techniques, including how to properly secure cargo and check for blind spots or dangerous debris before operating any vehicle.

• Disciplinary procedures — Create actionable steps to follow when you’re informed of an unacceptable MVR check or ongoing poor driving performance.

• Drug and alcohol testing — Set up procedures for testing applicants and existing employees to enforce a zero-tolerance policy.

• Cellphone use policy — Prohibit all cellphone use behind the wheel except when the vehicle is parked.

Setting clear, common standards makes it easier for you to enforce them. Keep in mind that writing the policies alone isn’t enough. You or your designated safety manager must also monitor employees to ensure they abide by your guidelines.

Clarify Employee Responsibilities

Depending on the size of your fleet, you may need a coordinator who oversees your vehicle safety program. The coordinator’s responsibilities should include advising upper management on accident prevention and safety practices, developing and overseeing accident prevention measures, periodically reviewing driver performance and maintaining records, investigating accidents to determine causes and prevention opportunities, managing a preventive maintenance program and schedule and reviewing inspection forms and following up on needed maintenance.

A fleet coordinator creates more responsibility for day-to-day oversight and protection.

Remember to hold your coordinator to the same standards as your drivers, ensuring they monitor driver practices and behaviors and establish goals to continually improve safety. Support your coordinator by budgeting time and money to effectively administer and enforce your fleet safety program.

Be Proactive to Prevent Negligence

Establishing and enforcing a safety and risk management policy will go a long way toward limiting your liability if one of your drivers is involved in an accident. If an accident occurs because of a driver’s negligence, or your own negligence in hiring, training or monitoring, your business may be liable.

Negligent entrustment liability allows an injured party to recover damages because a person — or business — put a dangerous device (such as a vehicle) in the possession of someone who wasn’t equipped to handle it properly or safely or was negligent in their practices. In some cases, your business may be sued.

If your insurance policies provide limited coverage, or none, for incidents of negligent entrustment, your business may face increased risk. However, there are ways to help reduce your business’s exposure to such a suit:

Specifically address topics like distracted driving, speeding, seat belt usage and pedestrian safety in your fleet safety program.

Review MVR results and use them to establish a risk-scoring system to help objectively and consistently evaluate performance.

Provide regular driver safety training courses and ensure your drivers and fleet coordinators use formal logs and checklists to record vehicle inspection findings.

Be prepared to review your safety program frequently and apply it across your entire fleet to help ensure its effectiveness. While there’s no way to guarantee that you’ll never incur an accident caused by negligent entrustment, having a solid safety program can help reduce your risk of loss.

Consult your business’s legal team to see how well your current program would stand up against a negligent entrustment lawsuit. Also consider talking to your insurance provider about what coverages you can obtain ahead of time to help protect your business from a significant loss if you’re found liable.

While you may already be well-versed in the construction industry’s day-to-day safety concerns, regularly reevaluating your fleet safety program can be one of the most valuable practices to protect your employees — and others — on the road.

Demonstrate your ongoing dedication to safety by implementing high standards and keeping all your employees responsible for following them every day, on every job.