Best Practices for Fleet Management

A contractor's well-managed commercial auto fleet keeps your business running smoothly and safely. By focusing on key areas like hiring qualified drivers, providing ongoing training, and maintaining vehicles properly, you can protect your assets and improve overall efficiency
December 30, 2024 | Contractor
By: Keri H.
Keri has over 20 years of experience insuring contractors, both on the agency side and the carrier side. She holds the Construction Risk Insurance Specialist designation from IRMI and is a member of the Construction Customer Focus team. Helping insure contractors properly and providing education to help them run their businesses better is one of the ways Acuity dares to care about our agents and policyholders. Keri is passionate about educating agents and policyholders because education is often the first step in a relationship and sets the foundation for success.

Author of Contractor Focus

A well-maintained commercial auto fleet is vital to a contractor’s business. By implementing effective fleet management practices, including driver selection, training, and maintenance, you can reduce vehicle downtime, extend asset lifespan, and minimize accidents. 

 

Driver Selection

The first step in hiring skilled drivers for your business is to establish parameters for acceptable age, experience, and driving record. 

Age

  • Because younger drivers (16–19) have generally been driving for fewer years than older drivers, they may be more likely to be involved in an at-fault accident. 

 

Experience

  • Today, many individuals are choosing to delay when they obtain their driver’s license. A 21-year-old driver who was licensed at 20 has less experience than a 19-year-old driver who was licensed at 16. Ask how long a driver has been licensed rather than just assuming they began driving at 16. 
  • When recruiting and selecting drivers, it is important that the driver have experience with the type of vehicle you expect them to drive. Two years of experience on heavy weight and specialty type vehicles should be the minimum requirement. For example, someone may have a commercial driver’s license and experience driving a dump truck, but that does not mean they are the best choice for driving a garbage truck. 

 

Driving Record

  • Not all drivers have perfect driving records. Businesses should have a written protocol regarding violations and what is acceptable. Checking a driver’s MVR prior to hiring and comparing it against your acceptable criteria is important because, in the event of an at-fault accident, you may need to demonstrate that you hire drivers of a certain experience level. However, using driving records in your hiring decisions has legal consequences, so be sure to discuss appropriate procedures with an attorney experienced in employment law. 
  • Driver records should be checked at least annually and include appropriate disciplinary action for drivers who experience violations or at-fault accidents. Disciplinary action could be a verbal warning, written documentation in the employment file, loss of driving privileges, and/or termination. 
  • Your independent agent may be able to assist you with developing driver acceptability guidelines that are consistent with your insurance carrier’s guidelines.

 

Training

Once drivers are deemed acceptable and hired, they should be trained regularly on topics such as:

  • Defensive driving, including:
    • Not following too closely
    • Avoiding distracted driving (drivers who text while driving are 23X more likely to be involved in a car accident!)
    • Not speeding 
  • Recognizing and responding to road rage
  • Healthy habits, including avoiding fatigue

 

Offering safety incentives can help reinforce training topics and encourage defensive driving.

 

Fleet Maintenance

Older vehicles often require more upkeep, but regular maintenance helps keep your fleet operational and safe.


Maintenance Scheduling
Establish a maintenance schedule and ensure mechanics—whether in-house or external—have the necessary experience. If using an external service, confirm they carry appropriate liability insurance. For added protection, inquire about garagekeepers direct damage coverage for property damage.


Safety Devices
Tools like GPS, cameras, and telematics monitor driver behavior and vehicle location, and they can help establish fault in accidents.


Pre- and Post-Trip Inspections
Pre- and post-trip vehicle inspections are essential for identifying issues before they become costly problems. Set an example by performing these inspections yourself, even if you drive a company sedan. Employees are more likely to follow safety protocols when management leads by example.

 

Why it Matters

Implementing driver guidelines, training, and maintenance protocols safeguards your company’s reputation and financial stability. While maintenance has a cost, neglecting it costs significantly more. Proactive upkeep reduces accidents, extends vehicle lifespan, and ensures your fleet remains operational.

Remember, having a fleet management program is only the first step—it must be actively monitored and adjusted as needed. An unenforced program can be worse than no program at all.

 

Need Assistance?

Acuity provides resources to support fleet and driver safety. Policyholders can access safety materials and videos online, as well as consult with Acuity loss control representatives.

For more information, contact your independent insurance agent or visit www.acuity.com. By demonstrating a commitment to safety, you may also secure better insurance rates and terms compared to peers without similar measures.

By: Keri H.
Keri has over 20 years of experience insuring contractors, both on the agency side and the carrier side. She holds the Construction Risk Insurance Specialist designation from IRMI and is a member of the Construction Customer Focus team. Helping insure contractors properly and providing education to help them run their businesses better is one of the ways Acuity dares to care about our agents and policyholders. Keri is passionate about educating agents and policyholders because education is often the first step in a relationship and sets the foundation for success.

Author of Contractor Focus