Lowering The Risk of Business Vehicles
No parent would knowingly entrust their child to a daycare that didn’t screen employees in some manner. Today, it’s an expectation and a standard business practice. Likewise, employers should fully evaluate business vehicle drivers before hiring them. MVR reviews are a component of any complete driver safety program.
Business vehicles present one of the largest risks to any company. Auto claims are frequent and payouts for these accidents average to be some of the largest. According to the Insurance Information Institute, business auto claims rose 32% from 2015 to 2019 and reached almost $26 billion. Both the number of auto claims and their size continue to trend upwards, increasing risk to businesses.
Driver Safety Program
The first line of defense against motor vehicle claims is to prevent them in the first place. Businesses that utilize vehicles in their operations need to establish a driver safety program which includes at a minimum:
- Pre-hire driver screening
- New hire driver training
- Recurring driver training
- Driver monitoring/scoring, and
- Defined reward/corrective actions
Note: Your Bankers Insurance agent can provide documents and resources to help plan and establish your company’s driver safety program.
Pre-Hire Motor Vehicle Reports (MVRs)
If business operations include hiring drivers, be certain to incorporate MVR reviews into the pre-hire screening program. An MVR is a report of an individual’s driving history from the state’s department of motor vehicles. It is essential to review these records beforehand to ensure bringing on the best employees available. Reviewing a job applicant’s MVR is a critical part of a larger driver safety program and protects a business from negligent hiring. It reduces liability and saves money on insurance costs.
What Does an MVR Review Include?
The information in an MVR varies by state, but generally shows:
- driving history
- license class
- license endorsements
- current license status
- past license statuses such as revocations, suspensions, and cancellations
Where Do We Get MVRs?
Businesses often require employees to provide a copy of their own MVR as a condition of employment prior to hire and yearly after that. Employees obtain these from their state’s department of transportation. Additionally, many services exist that, for a fee, will provide MVRs to businesses. In most states, MVRs can be ordered online.
When Should Employers Do MVR Reviews?
MVRs should be reviewed before hire, then at least yearly. Some businesses require MVR reviews on a semiannual basis. Depending upon your operations and class of drivers, federal, state, or local law may stipulate the frequency of MVR reviews. For example, motor carriers such as trucking companies subject to regulation by the U.S. Department of Transportation and Federal Motor Carrier Safety Administration must obtain and review a driver’s MVR every year and keep records for three years.
However, should a driver receive a significant offense, reviewing an MVR yearly or even semiannually may not be enough. For example, if a driver obtains a DUI and does not inform their employer, the business may want to learn of the issue immediately so that appropriate action may be taken. Many MVR monitoring services exist to fill this need.
- Establishing a Driver Hiring Program
- Driver Program Guidelines
- Driver Qualification File Checklist
- Driver Application
Questions regarding MVRs or how to establish a complete driver safety program? Contact your Bankers Insurance agent. Not a client of ours? Let us earn your business! Each client is assigned a personal agent in our office and provided a phone number that rings right on their desk.