When you take out a fleet insurance policy, or renew an existing policy, your insurer may ask you to clarify the steps you are taking to manage your fleet’s exposure to risk.
If you can provide strong evidence of your fleet risk management strategy, you may be able to make some savings on the price of your policy.
In this post we’ll outline the basics of a fleet risk management strategy. We’ll explore some of the risks you might have to consider, as well as some methods for managing and mitigating these risks.
For more information on how we can help you and your fleet, get in touch with us on 020 8290 9099 or email us at commercial.motor@anthonyjones.com.
Understanding The Risks Your Fleet Faces
If you want to manage risks within your fleet, first you’ll have to identify the specific risks you’re dealing with.
These might include:
- Road accidents as a result of poor driver behaviour, including tired or distracted driving, aggressive driving, or speeding.
- Adverse weather, and its effect on the roads.
- Vehicle failure.
- Operational risks – for example, poor route planning could result in significant delays, or worse.
- Regulatory risks. If you or your drivers do not comply with the training or licensing requirements, you will face some severe penalties, and you may even invalidate your fleet insurance.
Conducting Fleet Risk Assessments
Once you’ve identified the risks your fleet is facing, you need to determine:
- How likely it is that each risk will occur.
- The possible severity of each separate risk, with costings where possible.
- Who or what will be affected by each risk – your drivers, their vehicles, the environment, other road users etc.
Building a Fleet Risk Management Strategy
Once you’ve identified and assessed your risks, you can develop a strategy for managing or mitigating each unique risk.
Your fleet risk management strategies may include:
- Driver training, and other strategies to improve driver behaviour. Read our guide to improving driver behaviour.
- Introducing a fleet safety culture to improve safety standards on the roads. Read our guide to fleet safety cultures.
- An operational audit to reduce downtime and improve fleet efficiency. Read our guide to reducing downtime in your fleet.
- Investment in vehicle safety tech, such as ADAS systems, along with fleet management software to optimise driver behaviour and streamline your operations.
- A review of your vehicle maintenance schedules, to ensure that you can address any problems with your vehicles as early as possible.
- A review of your vehicle replacement schedule, to ensure that any unsafe or inefficient vehicles get replaced before they cause you any problems.
Monitoring and Reviewing Your Fleet Risk Management Strategy
As we mentioned above, your insurer may request evidence that you’re taking steps to manage risk in your fleet. This is why you need to monitor, measure, and review the impact of your risk management efforts.
Look for metrics that will help you track each risk management strategy you adopt. These might include:
- Maintenance costs
- Fuel costs
- Total downtime
- Number of reported accidents and incidents.
Remember that risk management isn’t a “one and done” job. You should conduct regular risk assessments to identify new or emerging risks. Reviewing your risk assessment will also give you an idea of how effectively you’re managing existing risks.
Fleet Insurance is an Essential Part of Fleet Risk Management
While fleet insurance won’t itself prevent risks, comprehensive cover can ensure that your business and your fleet can recover should anything go wrong.
At Anthony Jones, we can help you find the flexible and comprehensive fleet insurance cover you need at the best possible price.
For more information on how we can help you and your fleet, get in touch with us on 020 8290 9099 or email us at commercial.motor@anthonyjones.com.
