Comprehensive Fleet Policies for Driver Safety

Dan Shive

VP of Risk Management Services, LeasePlan

What trends are you see­ing in dri­ver safe­ty?

There are real­ly three things that we are see­ing in the world of dri­ver safe­ty right now. One is more com­pre­hen­sive fleet poli­cies. We are also see­ing a major shift towards dri­ver train­ing. Clients are also start­ing to look at their own insur­ances, whether it is phys­i­cal dam­age cov­er­age or lia­bil­i­ty and how it is bun­dled with all their oth­er cov­er­ages.

What does Lease­Plan offer with respect to insur­ance?

Lease­Plan pro­vides insur­ance to its clients through a bro­ker with var­i­ous types of cov­er­age. It is a very flex­i­ble pro­gram where we eval­u­ate our clients and help them deter­mine what type and what amount of cov­er­age they need.

How does this tie togeth­er with your oth­er ser­vices?

With­in Lease­Plan, we have what is called a “pur­suit of safe­ty.” We pro­vide ser­vices that help our clients not only look at their fleet poli­cies today but we also pro­vide a gap analy­sis and look at best prac­tices to help them. With­in the pur­suit of safe­ty, we also have dri­ver train­ing pro­grams. Those dri­ver train­ing pro­grams, along with insur­ance, tie togeth­er to help mit­i­gate risk, ease costs and max­i­mize the effi­cien­cy of the fleet as it relates to the total cost of own­er­ship.

Can you give us an exam­ple of how these ser­vices would be used?

We have had sev­er­al clients that have asked us to look at their fleet pol­i­cy. We do an analy­sis of the main top­ics with­in the fleet pol­i­cy. We also have some case stud­ies and what we have deter­mined to be best prac­tices regard­ing fleet poli­cies with­in the indus­try. We will then pro­vide the client with a gap analy­sis and guide them towards imple­ment­ing and ini­ti­at­ing pro­grams such as MVRs, point assign­ment and things along the line of risk pro­fil­ing. Once you iden­ti­fy a dri­ver is high-or medi­um-risk, it is about reed­u­cat­ing that dri­ver to get them to com­ply with the company’s fleet pol­i­cy to make sure they can stay in his or her com­pa­ny vehi­cle. There are so many poli­cies that we see that are very well writ­ten. Unfor­tu­nate­ly, not all of them have very high adher­ence rates. That is one area where we can help our clients.

The sec­ond area real­ly is twofold – dri­ver train­ing and get­ting dri­vers to read the fleet pol­i­cy and score 100 per­cent when they are test­ed on it. They need to know it to the point where there is no ambi­gu­i­ty. The sec­ond piece is the dri­ver train­ing itself. Many clients used tohire an employ­ee, get them a car and hand them the keys. Now it is more about mak­ing sure that the dri­vers know what is expect­ed of them. Not only with­in the fleet pol­i­cy but also what is expect­ed of them in terms of dis­tract­ed dri­ving, espe­cial­ly these days. Also, they need to know what is expect­ed of them in terms of care of the vehi­cle, not only from a main­te­nance per­spec­tive, but from a dri­ving per­spec­tive as well. That is where dri­ver train­ing can real­ly help out. It sets a base­line for dri­vers to know what is expect­ed of them.

Do you have any sense of what kind of cost sav­ings that a fleet can enjoy with a pro­gram like this?

Those sav­ings can vary. First, you have to bench­mark where you are in terms of a loss ratio. You have to look also at the total cost of a claim. It is not just the phys­i­cal dam­age and bent met­al; usu­al­ly that rep­re­sents a very small por­tion of the total cost of a claim. So, when you look at first bench­mark­ing where you are, then you can start to devise the types of pro­grams to reduce those loss­es. Typ­i­cal­ly, when you reduce any sin­gle col­li­sion, you have the abil­i­ty to low­er your cost on the col­li­sion and the phys­i­cal dam­age side. But you can also reduce costs asso­ci­at­ed with lia­bil­i­ty, worker’s comp. etc., which rep­re­sent a much high­er per­cent­age of the total cost.

How does the insur­ance work for a fleet?

Through our bro­ker, we will pro­vide clients with insur­ance cov­er­age just like they would go and get through an insur­ance bro­ker. Typ­i­cal­ly, a client today is bundling all of their cov­er­age whether it is auto, auto lia­bil­i­ty, phys­i­cal dam­age, worker’s comp., etc. It could be oth­er types of umbrel­la poli­cies all bun­dled togeth­er. What is impor­tant these days is that fleet and risk man­agers are real­ly look­ing at the total cost of own­er­ship of a vehi­cle. When you have all of your insur­ances on the side with all of your cov­er­age, it is hard to get a full pic­ture of your total cost of own­er­ship. With Lease­Plan, when we pro­vide this insur­ance prod­uct to our clients, every­thing in terms of billing comes to that client so that they can get the full cost of own­er­ship. There are cer­tain­ly con­cerns with unbundling your insur­ance cov­er­age. Our advice typ­i­cal­ly is to review it and ask your cur­rent bro­ker to price that prod­uct out with and with­out the auto por­tion of the poli­cies. That is the best way to look at it. The oth­er thing is that with LeasePlan’s insur­ance, we also pro­vide the ser­vices around it includ­ing acci­dent man­age­ment and risk mit­i­ga­tion. We go through the process of eval­u­at­ing the dri­vers with our clients and our bro­ker. We get a pro­file on each dri­ver based on the sever­i­ty lev­el of their motor vehi­cle records and vio­la­tions as well as their acci­dent his­to­ry. From there, we take it a step fur­ther. We look to reed­u­cate that dri­ver through dri­ver train­ing and oth­er mea­sures to get the dri­ver to real­ly under­stand that, first and fore­most, they are impor­tant to the com­pa­ny, but that their dri­ving behav­ior needs to start chang­ing in a pos­i­tive way.

BIO

Dan Shive serves as vice pres­i­dent, risk man­age­ment ser­vices in LeasePlan’s Chica­go office. In his role, he is respon­si­ble for the sale and reten­tion of Acci­dent Man­age­ment ser­vices, the intro­duc­tion of Risk Man­age­ment ser­vices to cur­rent and future clients such as pol­i­cy review/revisions and imple­men­ta­tion of safe­ty ser­vices.  He also stream­lines ser­vice offer­ings as it relates to claim han­dling. Dur­ing his 19-year tenure with Lease­Plan, Dan has served in sev­er­al oth­er roles includ­ing assis­tant sub­ro­ga­tion man­ag­er, insur­ance rental man­ag­er and imple­men­ta­tion man­ag­er. His pre­vi­ous indus­try expe­ri­ence includes five years in fleet at Great White where he man­aged 450 vehi­cles nation­wide. Dan is also active in many local and nation­al indus­try orga­ni­za­tions, such as NAFA and RIMS. He fre­quent­ly serves as a speak­er and sub­ject mat­ter expert for indus­try events. Dan earned a bachelor’s degree from West­ern Illi­nois Uni­ver­si­ty.

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