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Understanding Fleet
Risk Management
BY Ke n ny S m i t h
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3
SECTION
4
2
Why Is Auto So Difficult?
3
of auto
accidents are
caused by poor
driver choices.
96% Costs of other
work injuries
Each year
3,000 - 4,000
workers die while
driving.
3x
4
How can I manage
the drivers?
I can’t see them.
I get calls from
people about
our drivers.
Well no… we
don’t have any
rules or
expectations.
5
Auto Risk Management – It Isn’t
Simple But It Can Be Managed
• Accidents have causes
• 95% of accidents have two or more “causes”
• Accident prevention/reduction
 Identifying and predicting “causes”
 Implement controls (fixes) where you find deficiencies
6
Accident Causation
95% of accidents have two or more “causes”
Equipment Entity Policy/MgtPeople
Environment Materials/Other Department Policy
Accident
Crash
Incident
Injury
Cause Effect
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4
8
Accident Trends
9
Auto Loss Trends
Law
EnforcementPublic Works
Fire
Department
Parks and
Recreation
Admin
Operations
10
Auto Loss Trends
Common Claim Types Claim Cost
Hit Vehicle
Ahead
Inter-
section
Head-on
Other
Sideswipe
Backing
Severity
Hit
Vehicle
Ahead
Backing
Inter-
section
Other
Sideswipe
Frequency
11
National Averages
National Highway Traffic Safety Association
Non-fatal crash
No injury
Non-fatal crash
With injury
Crash With
Fatality
$16,000 $70,000 $500,000
12
Claims Reporting And Investigation
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4
13
Culture Has A Lot To Do With It
14
Safety Culture
• Represents mindsets, values, and beliefs
• Entity
• Department
• Worksite (vehicles)
15
Safety Culture
• Represents mindsets, values, and beliefs
• Entity- Management driven
• Department- Every manager
• Worksite (vehicles)- Every site
16
Every Successful Safety Program Has:
• Three traits
• Culture – Everyone wants to be better/safer. Expectations are
accepted and fostered.
• Compliance – Rules/regulations/procedures and discipline
• Support – Management; by originating dialogue, funding
safety/machinery and equipment, and demanding safety be a
priority.
17
Develop Culture And Accountability
CONSEQUENCES (DRIVER)
RULES - BEHAVIOR & PERFORMANCE
ORGANIZATIONSUPPORT
(CULTURE,TRAINING,EQUIP/TOOLS…)
SUPERVISION
• Draw your box of acceptable behaviors
• Manage behaviors
18
Accident Rate And Culture
Accidents
Time = Years
Start 1 2 3
Management committed Change in commitment
19
Culture
Accidents
Management buy-in
Rules
Discipline
Supervisor training
Consequences
Employee buy-in
Self-directing
Watching out for ME
Watching out for US
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4
20
Fleet Controls
21
FYI
• Auto coverage is written on the vehicle, not the
driver
• You are responsible for any damage the vehicle does
o You are responsible for who drives
o You are responsible for securing the vehicle
• Develop your controls to survive intense questioning
• Failure to supervise (negligent entrustment)
• Failure to train
22
Fleet Safety – 95% Driver Management
• Management expectations – policy/rules
o Driving is a privilege
o Entity and departmental operational rules
• Driver supervision
o Driver selection – who you allow to drive
o Training
o Accident review
o Performance monitor (positive and negative response)
• Inspection and maintenance – driver and shop
23
Fleet Safety Program
A sample fleet safety program is provided.
K e n n y S m i t h
Kw s m i t h @ o n e b e a c o n g o v. c o m
R i s k C o n t r o l M a n a g e r
3 0 3 - 5 3 1 - 3 8 4 3
Questions

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2014 understanding fleet risk management.qtrly meeting