Fleet Management Strategies Rob Stiles, CSP Sr. Vice President Karen Kestle Vice President

Agenda & Ground Rules »Agenda –Fleet Hot Topics –Fleet Pre Loss Strategies –Fleet Post Loss Strategies –Resources »Ground Rules –We are the facilitators of this groups knowledge –Lets create discussion and debate –Emergency exits –Restrooms and breaks

FLEET HOT TOPICS

Worker Deaths & Injuries On & Off the Job

Negligent Entrustment The act of an employer leaving a dangerous article with an employee whom the employer knows, or should know, is likely to use it in an unreasonably risk manner.

Negligent Entrustment »Typically, negligent entrustment arises in an employment situation when; –The employer carelessly allowed or entrusted an employee to use an instrument that could cause harm. –The employer knew or should have known of the incompetence of the employee. –The incompetence of the employee was a substantial factor in the cause of the injury.

This is Important Because: »There is an increasing frequency of Negligent Entrustment claims nationwide. »There is a growing trend to include Punitive Damages (typically not insurable). »Negligent Entrustment cases usually involve serious incidents with loss of life, serious injury, or other dramatic consequences. »These actions are not restricted to “large trucking” operations.

When is a Driver Incompetent? »Not properly qualified at the time of hire. »Was disqualified under DOT regulations. »Has history of accidents and/or violations. »Lacks appropriate skills for the size and type of vehicle operated. »Others from the group?

When is an Employer Negligent? »Employer did not execute a diligent effort to obtain qualifying information. »Employer was inconsistent in the application of their own policy. »Employee did not train the driver, or confirm past training. »Employer did not properly monitor the driver. »Employer had information, and took no action.

Tenders/Contractual Issues »Review of contracts and policies »Insurance carrier response

Distracted Driving »Distracted Driving is becoming an epidemic!!!! »Distracted driving is any non-driving activity a person engages in while operating a motor vehicle. »There are three main type of distractions –Visual – taking your eyes off the road –Manual – taking your hands off the weel –Cognitive – taking your mind off of what you’re doing

Distracted Driving »Rapidly growing problem –Thousands of new MCD’s are issued every day –Talking and texting on the cell phone and driving have become prolific –Several high profile crashes have brought this to public attention –The US government has begun taking serious actions. –2008 AAA survey respondents ranked distracted driving higher than drunken driving.

Distracted Driving Study Findings »Reaction time and perception are impaired »Comparisons have been made to driving under the influence of alcohol – socially unacceptable »Virginia Tech study* determined driving while texting increases crash risk by 23X »Use of MCD’s causes impaired driving »For every 6 seconds you are driving, 4 seconds are spent looking at the keyboard (320 feet at 60 mph) »No difference in distraction between hand-held and hands-free devices. *2009 VTTI 100-Car Naturalistic Study

Distracted Driving Laws »Currently 30 states, DC, and Guam now ban driving while texting and 8 states, DC, the Virgin Islands limit cell phone use. –Primary offence –Secondary offence »Utah – Driving while texting with a fatality –Negligent homicide –$10,000 fine, 15-year jail term »Pending US Senate actions will require every state to ban driving while texting and limit cell phone use and make it a primary offence. »Transportations Secretary LaHood announced new anti-distracted driving regulations for commercial drivers (Trucks, Bus & Rail)

Distracted Driving »What are companies doing? Trying to change behavior –Developing and enforcing specific policies throughout the organization Drivers, managers, customer service, dispatchers –Technology

ROAD RAGE & AGGRESSIVE DRIVING!!!!!

FLEET PRE LOSS STRATEGIES

ANSI/ASSE Z Safe Practices for Motor Vehicle Operations Effective April 28, 2006

Z15.1 Purpose »To provide organizations with a guidance document for development of policies, procedures, and management processes to control risks associated with the operation, of all motor vehicles used for company purposes. »How do you think this is going to impact Negligent Entrustment?

Z15.1 Application »Any driver and vehicle operating on the road-way for company purposes. Drivers operating vehicles in: –Fleet –Leased or Rented –Private but used for Company Business –Office personnel attending conferences, off site training, business lunch meetings, etc.

Z15.1 Provides »Best practices for the safe operations of vehicles owned or operated by organizations, including; –Management, Leadership, and Administration –Operational Environment –Driver Considerations –Vehicle Considerations –Incident Reporting and Analysis

FLEET POST LOSS CONTROLS

Serious Accident Response Take a more active role in serious auto claims!!! »Immediately notify carrier of incident »Ask carrier to assign defense counsel to protect investigation »Advise driver not to make any statements to anyone other than; –You, –Defense counsel or –The carrier adjuster »Crisis management coverage

FLEET PROGRAM MANAGEMENT RESOURCES

Resources and Best Practices Handouts »MVR grading criteria »Sample Business Use Policy »Sample Personal Use Policy »Sample Driver Owned/Leased Vehicle Used for Business Purposes Policy »Sample Rental Vehicle Policy

1-800 Call In Services »Difference in Vendors –Safety Alert –Drivers Alert –Driver Check »Logistics and Challenges »Effective?

Training »Smith System - »Liberty Mutual – Decision Driving »Hartford 3D Program »National Safety Council »Coaching Systems - »Virtual Risk Manager - »Driving Simulators - »Alert Driving -

Other Technology »Drive Cam - »The Black Box – »Lane Departure Warning Systems – – – »Adaptive Cruise Control (ACC) »Drowsy Driver Monitors – a.k.a. Copilot »Green Road - »Cell Control -

Resources »ANSI – »NHSTA - »Drive Smart Virginia - »Governors Highway Safety Association - »FMCSA Safety and Fitness Electronic Records System »National Safety Council – »Distraction.gov -

Presenter Contact information »Rob Stiles, CSP Sr. Vice President, Division Manager Rutherfoord Risk Services and »Karen Kestle Vice President, Director of Claims Services Rutherfoord Risk Services and