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Vehicle Operation Risk Management

Vehicle Operation Risk Management. Best Practices & Tips on Implementing a Program for Your Agency January 23, 2007. Your Presenters. Cathie Bigger-Smith, CSP, ARM, CPSI Risk Control Manager, Bickmore Risk Services Marcus Beverley, CPCU, AIC, ARM

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Vehicle Operation Risk Management

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  1. Vehicle Operation Risk Management Best Practices & Tips on Implementing a Program for Your Agency January 23, 2007

  2. Your Presenters Cathie Bigger-Smith, CSP, ARM, CPSI Risk Control Manager, Bickmore Risk Services Marcus Beverley, CPCU, AIC, ARM Director of Risk Management, ABAG PLAN

  3. Is your driver and vehicle risk management program on the right road? This session will: • Define liability as it relates to City/Agency vehicle operations • Identify elements of successful programs to reduce the frequency and severity of vehicle losses • Help you put the “best practices” to use in your organization to improve the safety of your employees • Provide data and information to sell your case and justify resources

  4. Are you or your City liable for… • Accidents involving City-owned or leased vehicles? • Employees using personal vehicles on behalf of the City? • Personal use of City vehicles? • Accidents related to police pursuits? • Accidents involving a co-worker as passenger?

  5. Basis for Legal Liability • Employment relationship with driver • Doctrine of respondeat superior • The City exercises some degree of control over the driver and the accident occurred in the course of employment. • Negligent hiring and retention • The City failed to exercise due care when hiring employees to drive (i.e. checking MVRs).

  6. Basis for Legal Liability • Employment relationship with driver • Negligent entrustment or supervision • The City failed to take corrective action when it became or should have become aware of poor habits, tickets, or prior accidents • Negligent training • The City failed to provide appropriate documented training for the specific vehicle type

  7. Basis for Legal Liability • Agency relationship with driver • Driver represents or acts on behalf of the City in carrying out duties, including: • Elected officials • Board members • Volunteers • Contractors • Consultants

  8. Basis for Legal Liability • Vehicle owner liability • Statutory • Vehicle owners are liable for damages caused by any permissive user • $15,000 for death or bodily injury of any one person, any one accident • $30,000 for all persons in any one accident • $5,000 for property damage in any one accident • Failure to maintain • Includes failure to conduct inspections that would prevent operation of vehicle with known defects • Vehicle driver liability • Civil • Potential liability is limitless

  9. Avoiding or Minimizing Liability • Driver selection and management • Enforced vehicle use and operations policies • Insurance requirements for use of personal vehicles • Distracted driver controls • Vehicle maintenance and replacement programs • Vehicle selection and use review (i.e. 15-passenger vans)

  10. But the real reason for an effective driver and vehicle management program is…

  11. ABAG PLAN Auto Liability Claims Frequency

  12. ABAG Claims Cost

  13. Cost to ABAG Members

  14. Concerns of a Good Driver and Vehicle Risk Management Program • Driver skills, qualifications, and performance • Equipment selection and maintenance • Use of loss trends and accident investigations to prevent reoccurrence • Identification and correction of problems before they lead to an accident • An accountability system to ensure the program works

  15. ABAG PLAN Best Practices for Driver and Vehicle Program Management Driver Selection and Training Measures 2-1-2 There is a written program in place that is actively utilized as the basis for driver selection and screening of employees and prospective employees for driving related duties. 2-1-3 There is evidence that employees with negative Motor Vehicle Records (MVRs) activity as defined by ABAG PLAN standards are provided personnel counseling, training, rehabilitation, and/or are removed from driving responsibilities depending on the nature and seriousness of the activity on their MVRs or observed driving behavior. 2-1-4 All employees who drive any vehicle on City business are enrolled in the DMV Employer Pull Notice (EPN) program and MVRs are reviewed to prevent negligent retention. Note: Releases required for drivers whose license does not require participation in the EPN program.

  16. ABAG PLAN Best Practices for Driver and Vehicle Program Management Vehicle Maintenance Measures 2-1-6 Vehicles and records are maintained to meet standards and warranties relevant to the vehicles or equipment and to help defend negligence claims. Vehicle Operations Measures 2-1-8 The City has adopted a vehicle use policy detailing when and how City and personal vehicles may be used for City business. 2-1-9 The City has adopted a cell phone or "distracted driver" policy and all vehicle accident investigations reflect any "distracted driver" implication as part of the root cause analysis.

  17. ABAG Best Practices:Reduce Accidents and Minimize Liability • Vehicle accidents are the #1 cause of workplace fatalities • Your City is liable for the operation of its vehicles and its drivers • Most vehicle mishaps are due to driver error • Accidents that are not driver error are usually due to mechanical/maintenance failures or road conditions • Data increasingly suggests that “distracted driving” accounts for a significant number of accidents • Recent regulatory standards have been adopted to address vehicle and driver safety

  18. Getting the Pieces in Place

  19. Key Definitions

  20. Commercial Driver’s License • Needed to drive a commercial vehicle • Gross vehicle weight over 26,000 lbs • Designed, used, or maintained for carrying more than 10 passengers (including driver) • Tows a vehicle or trailer over 10,000 lbs. • Transports hazardous materials requiring placards • Tows any combination of vehicles or trailers • Has Transportation Security Administration and medical requirements

  21. Starting with the Basics:License Requirements • Non-commercial Class A license • Required to tow travel trailers over 5 tons, 5th wheel over 7.5 tons, or livestock trailers • Non-commercial Class B license • Required to operate a house trailer 40-45 feet (firefighter licenses and Class A holders are exempt) • Class C License • The rest of us

  22. More definitions • Employer Pull Notice (EPN) program “Allows your organization to monitor DL records of employees who drive on your organization’s behalf.” Its benefits include: • “Improves public safety.” • “Determines if each driver has a valid DL.” • “Reveals problem drivers or driving behavior.” • “Helps minimize your liability.” • All Class A & B License holders must be enrolled

  23. World Class* Driver and Vehicle Management Programs • Written vehicle safety rules and policies provided to all drivers including “distracted driving” • Consistently followed and documented driver selection, training, and monitoring procedures • Accident trending and tracking • Accident investigation • Established vehicle selection, maintenance, and replacement policies * ISO 9001:1994, ANSI Z15.1

  24. Available Support • California Hands Free Law – SB1613 • ANSI Z15.1: Standard Safe Practices for Motor Vehicle Operations (adopted as OSHA’s guideline enforceable under “General Duty Clause”) • California’s Employer Pull Notice program • Safety typically a “management rights clause” issue • Best practices commonly used in private sector for many years

  25. Driver Selection and Vehicle Use Policy • What is the City/Town responsible for? • Operating, maintaining, storing equipment • Selecting and training responsible drivers • Compliance with federal, state, and local laws • Investigating accidents • Enforcing policy and rules • Minimizing need for distracted driving • Who can drive? • Licensed • Insurable • Skilled • Authorized

  26. Policy Statement • Commitment • Accident reporting • Monitor, report, and evaluate vehicle accidents • Training • Must be consistent with your Human Resources Department’s policies (Sample in ABAG Risk Management Handbook)

  27. Driver Selection, Placement and Training Tools to evaluate driver qualifications for selection and placement • Initial and periodic MVR evaluation and review • Road testing • “Behind the wheel” driver training • Defensive driving • Accident reporting • Use of accident photo packets • Vehicle maintenance and inspections

  28. How EPN Works • Enrolled employer gets a “requester code” • Code added to employee’s DL record • If an action/activity is one that is specified* to be reported under the EPN program, the driver record is generated and mailed to the employer. *Convictions, failure to appear, accidents, license suspensions or revocations and any other actions taken against driving privilege” • A good policy requires the employee to notify employer of DUI, suspension, or restriction of license, regardless of EPN status.

  29. Evaluating Motor Vehicle Records

  30. Acceptable MVR No activity in last three years and no major convictions in the last five years OR No major convictions in the last five yearsand no more than: • One at-fault accident in last three years • Two minor convictions in the last three years • One at-fault accident and one minor conviction in the last three years

  31. Major Convictions • Driving under the influence of alcohol or drugs • Includes prescription drugs that bear the warning that operating machinery or a motor vehicle while using this drug is unsafe • Driving while impaired • Reckless driving, racing, or speed contest • Failure to report an accident • Making a false accident report

  32. Major Convictions • Vehicular homicide or manslaughter • Attempting to evade a police officer • Driving with a suspended or revoked license • Speeding in excess of 25 mph more than the posted speed limit • Hit and run • Others as applicable

  33. Minor Convictions • Speeding less than 25 mph over the posted speed limit • Running a stop sign or red light • Improper turn • Crossing a double-yellow line • Failure to wear a seatbelt • Failure to yield • Following too close • Others as applicable

  34. Borderline MVR • No major convictions in the last three years and: • One major conviction within the last five years • One at-fault accident and two minor convictions • Three minor convictions • Two at-fault accidents

  35. Unacceptable • One or more major convictions in the last three years • Four or more minor convictions in the last three years • Three or more at-fault accidents in the last three years • Any combination of minor convictions and at-fault accidents totaling four or more

  36. Establish and Enforce Vehicle Operations and Safety Rules • Parking requirements • Personal use • Backing • Compliance with all state laws including seat belts • Pre-trip inspections • No non-employee riders? • Required shift inspection? • Use of cones? • Use of radios or cell phones

  37. Reporting Accidents:Just the Facts At the scene • First aid • Information from all Involved • Weather/road conditions • Complete description with diagram • Picture • Notify police if required • Internal investigation • Root cause leading to remedial action • Reporting to ABAG PLAN

  38. Other Management Issues • Vehicle selection • Front and side airbags • Vehicle weight 2860-3740 lbs min • ABS Brakes • Vans and specialty vehicles • Maintenance • Less than 5% of accidents • Replacement • Vehicle age or mileage as guide

  39. Vehicle Replacement You know you need a new car when... • You pull over to let a fire truck go by, and it stops behind you. • You have to go to a repair center every thousand miles to get the duct tape replaced. • You accidentally drive into a junkyard, drive out, and get accused of stealing. • You get the blue book value by adding up a list of individual parts. • The only thing holding your bumper on is the "Bush/Quayle '88" sticker. • You return to your car and find someone broke in and left a hundred dollars and a new stereo. • Evil Knievel refuses a free lift. • The valet puts on a crash helmet and full-body armor before parking your car.

  40. Vehicles should be equipped with… • Accident reporting kit • Proof of Insurance or self insurance - VC 16020 (4) • Spare tire and jack • First aid kit • Flashlight • Fire extinguisher • Flares/lighting/triangles • Wheel chocks • Operators manual

  41. Inspections • Daily or at the beginning of each shift • Weekly • Annual

  42. Maintenance • Routine scheduled • Mechanism for drivers to report problems • Documentation • Ensures timely service • Provides defense • Helps resale

  43. How will you know if it’s working? • Fewer and less severe accidents • Mandatory participation in driver training and coaching • No one driving with a “questionable” MVR • Accident investigations don’t just “lay blame,” they find causes and remedies • A supported, city-wide culture shift focused on stopping distracted driving • Records are current and limits adequate on employee personal insurance if they drive personal vehicles on City business. • Claim reports to ABAG PLAN or coverage pool are complete and timely

  44. Please complete your ABAG PLAN session evaluation. Let us know if you like the webinar format! Complete it at: http://surveys.bickmore.org/surveys/abag/eval0107/survey.htm Your feedback helps us Know what to change or improve Make training more meaningful and effective Add new topics where additional information is needed We're begging you...

  45. To Include in Packet • PPT • EPN PULL Notice details • Referral to Website to complete the Distracted Driving questionnaire and answers • Adele Abrams Prof Safety Article ANSI/ASSE Z15.1: A tool for Preventing Motor Vehicle Injuries and Minimizing Liability • NTSB 15 Passenger Van Alert • http://www.mercurynews.com/mld/mercurynews/news/14899407.htm • Model Policy or Best Practices?

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