Sentry Solutions: Controlling Employee Vehicle Use

As a farm equipment manufacturer, your ability to control and manage the insurance risks associated with vehicle use by employees relies on the steps you take before accidents happen. On-the-job use of vehicles at manufacturing firms is quite expensive — and so are the risks. For example:

• Management and salespeople drive to customers’ sites for product presentations.
• Shop employees use assigned stake-trucks to transport equipment to a customers’ farm for pre-production tryout and final approval.
• Sales and management staff are assigned company vehicles for their business and personal use as part of the shop’s incentive program.
• Temporary employees deliver parts to customers, with no restriction on delivery distance.
• Front office employees deposit outgoing mail at the post office while driving a personal vehicle home.

Each of these scenarios represent a diverse, but realistic, use of vehicles by employees at the typical farm equipment manufacturer. Effectively controlling the associated risks represents one of your most important risk management challenges.

To help control risk factors associated with employees’ vehicle use, Sentry’s recommendations focus on written safety programs, employee training and equipment use and maintenance.

Written Safety Programs:

• Have all employees sign a Motor Vehicle Record (MVR) authorization form.
• Initiate a process to collect and review MVRs upon initial hire and every two years thereafter.
• Objectively evaluate each employee’s driving background over the last three years.
• Train employees on safe driving techniques and your expectations of their driving conduct.
• Specify disciplinary steps regarding employee driving conduct and MVR checks.
• Conduct drug and alcohol testing of all new employees and on a post-accident basis. (Some limitations may apply).
• Prohibit cell phone use while driving; permit use only after the vehicle has come to a complete stop.
• Ensure that vehicles over 10,000 pounds, or that transport hazardous materials, comply with Federal Motor Carrier Safety guidelines for driver qualifications.

Employee Training:

• Train new employees on your company’s safe-driving expectations. Have them read and sign your expectations document. Repeat each year thereafter.
• Train employees on quality accident reporting, investigation procedures and effective documentation.
• Review company-owned vehicle assignments. State in writing that the employee is the only authorized driver, and that accidents by unauthorized drivers will be the employee’s financial responsibility.
• When possible, assign specific vehicles to employees who conduct parts and supplies delivery. This will increase damage/complaint tracking and accountability.
• Limit employee delivery or pickup operations to a 250-mile radius on pre-planned, mapped routes.
• Require drivers to review the weight/configuration of cargo before departing on delivery runs. Secure cargo with properly rated rope, chain, brackets and/or anchor points.
• File copies of liability insurance certificates for employees driving personal vehicles on company business. Confirm $300,000 coverage or more.

Equipment Use & Maintenance:

• Ensure that the appropriate type of vehicle is used for the delivery application.
• Require headlight use at all times, enhancing visibility to other drivers.
• Require authorized drivers to notify management immediately of citations or at-fault accidents they incur while driving company or personal vehicles.
• Practice a preventive maintenance and repair schedule for all vehicles, including sales, fieldservice and delivery units.
• Complete and file a monthly vehicle inspection for each company-owned vehicle. Review results to identify vehicle damage, repair needs and driving conduct.

Driver Qualifications Criteria:

Adopt an MVR review procedure appropriate for your company. Immediate training may be necessary to improve employees’ awareness of and adherence to safe driving habits.

Sentry Insurance Solutions:

A note from Sentry: At Sentry Insurance, we want to help you protect the assets that contribute to the success and profitability of your company shop. Be diligent in preventing employee and customer injuries, as well as property damage. Your attention to safety will minimize accidents and help reduce your insurance costs.

Sentry Solutions contains general information on reducing risk. Sentry recommends that you consult with your legal counsel as appropriate.

To learn more about the Association’s program with Sentry Insurance go to FarmEquip.org/Endorsed_Services.