Fleet Management Strategies

1. Fleet Management Strategies Rob Stiles, CSP Sr. Vice President Karen Kestle Vice President

2. Agenda & Ground Rules • Agenda • Fleet Hot Topics • Fleet Pre Loss Strategies • Fleet Post Loss Strategies • Resources • Ground Rules • We are the facilitators of this groups knowledge • Lets create discussion and debate • Emergency exits • Restrooms and breaks

3. Fleet Hot Topics

4. Worker Deaths & Injuries On & Off the Job

5. Negligent Entrustment The act of an employer leaving a dangerous article with an employee whom the employer knows, or should know, is likely to use it in an unreasonably risk manner.

6. Negligent Entrustment • Typically, negligent entrustment arises in an employment situation when; • The employer carelessly allowed or entrusted an employee to use an instrument that could cause harm. • The employer knew or should have known of the incompetence of the employee. • The incompetence of the employee was a substantial factor in the cause of the injury.

7. This is Important Because: • There is an increasing frequency of Negligent Entrustment claims nationwide. • There is a growing trend to include Punitive Damages (typically not insurable). • Negligent Entrustment cases usually involve serious incidents with loss of life, serious injury, or other dramatic consequences. • These actions are not restricted to “large trucking” operations.

8. When is a Driver Incompetent? • Not properly qualified at the time of hire. • Was disqualified under DOT regulations. • Has history of accidents and/or violations. • Lacks appropriate skills for the size and type of vehicle operated. • Others from the group?

9. When is an Employer Negligent? • Employer did not execute a diligent effort to obtain qualifying information. • Employer was inconsistent in the application of their own policy. • Employee did not train the driver, or confirm past training. • Employer did not properly monitor the driver. • Employer had information, and took no action.

10. Tenders/Contractual Issues • Review of contracts and policies • Insurance carrier response

11. Distracted Driving • Distracted Driving is becoming an epidemic!!!! • Distracted driving is any non-driving activity a person engages in while operating a motor vehicle. • There are three main type of distractions • Visual – taking your eyes off the road • Manual – taking your hands off the weel • Cognitive – taking your mind off of what you’re doing

12. Distracted Driving • Rapidly growing problem • Thousands of new MCD’s are issued every day • Talking and texting on the cell phone and driving have become prolific • Several high profile crashes have brought this to public attention • The US government has begun taking serious actions. • 2008 AAA survey respondents ranked distracted driving higher than drunken driving.

13. Distracted Driving Study Findings • Reaction time and perception are impaired • Comparisons have been made to driving under the influence of alcohol – socially unacceptable • Virginia Tech study* determined driving while texting increases crash risk by 23X • Use of MCD’s causes impaired driving • For every 6 seconds you are driving, 4 seconds are spent looking at the keyboard (320 feet at 60 mph) • No difference in distraction between hand-held and hands-free devices. *2009 VTTI 100-Car Naturalistic Study

14. Distracted Driving Laws • Currently 30 states, DC, and Guam now ban driving while texting and 8 states, DC, the Virgin Islands limit cell phone use. • Primary offence • Secondary offence • Utah – Driving while texting with a fatality • Negligent homicide • $10,000 fine, 15-year jail term • Pending US Senate actions will require every state to ban driving while texting and limit cell phone use and make it a primary offence. • Transportations Secretary LaHood announced new anti-distracted driving regulations for commercial drivers (Trucks, Bus & Rail)

15. Distracted Driving • What are companies doing? Trying to change behavior • Developing and enforcing specific policies throughout the organization • Drivers, managers, customer service, dispatchers • Technology

16. ROAD RAGE & AGGRESSIVE DRIVING!!!!!

17. Fleet Pre Loss Strategies

18. ANSI/ASSE Z15.1 2006 Safe Practices for Motor Vehicle Operations Effective April 28, 2006

19. Z15.1 Purpose • To provide organizations with a guidance document for development of policies, procedures, and management processes to control risks associated with the operation, of all motor vehicles used for company purposes. • How do you think this is going to impact Negligent Entrustment?

20. Z15.1 Application • Any driver and vehicle operating on the road-way for company purposes. Drivers operating vehicles in: • Fleet • Leased or Rented • Private but used for Company Business • Office personnel attending conferences, off site training, business lunch meetings, etc.

21. Z15.1 Provides • Best practices for the safe operations of vehicles owned or operated by organizations, including; • Management, Leadership, and Administration • Operational Environment • Driver Considerations • Vehicle Considerations • Incident Reporting and Analysis

22. Fleet Post Loss Controls

23. Serious Accident Response Take a more active role in serious auto claims!!! • Immediately notify carrier of incident • Ask carrier to assign defense counsel to protect investigation • Advise driver not to make any statements to anyone other than; • You, • Defense counsel or • The carrier adjuster • Crisis management coverage

24. Fleet Program Management Resources

25. Resources and Best Practices Handouts • MVR grading criteria • Sample Business Use Policy • Sample Personal Use Policy • Sample Driver Owned/Leased Vehicle Used for Business Purposes Policy • Sample Rental Vehicle Policy

26. 1-800 Call In Services • Difference in Vendors • Safety Alert • Drivers Alert • Driver Check • Logistics and Challenges • Effective?

27. Training • Smith System - http://www.smith-system.com/ • Liberty Mutual – Decision Driving • Hartford 3D Program • National Safety Council - http://www.nsc.org/ddc/training/ddconline_train_courses.aspx • Coaching Systems - http://www.flilearning.com/index.php • Virtual Risk Manager - http://www.virtualriskmanager.net/main/ • Driving Simulators - http://www.shipanalytics.com/STS/markiii.asp • Alert Driving - https://www.alertdriving.com/index.php

28. Other Technology • Drive Cam - www.drivecam.com • The Black Box – www.roadsafety.com • Lane Departure Warning Systems – • http://www.iteris.com/ldws.aspx • http://www.mobileye-vision.com • Adaptive Cruise Control (ACC) • Drowsy Driver Monitors – a.k.a. Copilot • Green Road - http://www.greenroad.com/ • Cell Control - http://www.cellcontrol.com/indexexp.php

29. Resources • ANSI – www.ansi.org • NHSTA - www.nhtsa.gov • Drive Smart Virginia - www.drivesmartva.org • Governors Highway Safety Association - www.ghsa.org • FMCSA Safety and Fitness Electronic Records System - www.safersys.org • National Safety Council – www.nsc.org • Distraction.gov - www.distraction.gov

30. Presenter Contact information • Rob Stiles, CSP Sr. Vice President, Division Manager Rutherfoord Risk Services 804.915.5751 and rob.stiles@rutherfoord.com • Karen Kestle Vice President, Director of Claims Services Rutherfoord Risk Services 804.915.5751 and karen.kestle@rutherfoord.com