Why your business needs a Fleet Risk Services Strategy

In 2013, 64% of all workplace fatalities involved a vehicle.  This is an alarming statistic, but one that can be significantly reduced by implementing a simple, proactive risk reduction strategy to reduce the number of work related vehicle incidents that occur in your business.

Here are five key reasons why a fleet risk management strategy is a good idea:

  1. Adhere to duty of care obligations under Workplace Health and Safety laws.  Each year 6000 Victorians need hospital treatment for injuries resulting from road incidents. Don’t let your employees become a statistic! By reducing the risks involved in managing your fleet you can reduce the likelihood of an incident and improve the safety of your workplace.
  2. Reduce your premium and excess rates.  The long-term cost of running a fleet can have a significant impact on the profitability of a company, especially when motor vehicle accident costs are not controlled.  By reducing the number of incidents you can reduce the overall cost of Workcover to your business. Less incidents = less claims = lower premiums.
  3. Reduce your administration time and costs. Administering your motor vehicle incidents and resulting driver issues can be costly and time consuming.  Look into ways of streamlining systems and processes to provide a more efficient and cost effective way to manage your fleet program.
  4. Increased productivity with less time off the road.  By understanding where the trends are and reviewing the cause, more time can be spent implementing preventative strategies ultimately leading to reduced time off the road for your employees.
  5. Reduce repair costs at the end of lease time.  By reporting all incidents at the time they occur, you will avoid additional costly repair work at the end of the lease.  

The ‘real cost’ of a vehicle incident includes a lot more than just the cost of towing and vehicle repairs. Significant costs resulting from unproductive time, rental replacement, loss of vehicle value, medical, premium increases and legal costs can quickly mount up.  This provides a strong case for investing in incident reduction strategies, as the savings gained will be far greater than the investment made over the long term.

And the investment in mitigation doesn’t need to be huge. Sometimes simple pro-active ideas can have a big impact on seemingly complex, costly problems. Implementing some simple, well executed risk-mitigation strategies can go a long way towards improving your workplace safety culture and reducing vehicle incidents. For example:

Establish a driver safety program in support of the businesses OH&S requirements.

  • Manage and maintain a safety related section on a businesses intranet site.
  • Compile on-line safety newsletters.
  • Conduct regular driver training, either online or behavioural.
  • Provide counselling to offending drivers to identify the cause of bad driving habits.

For more ideas on how you can implement an effective Fleet Risk Strategy into your business and reduce the cost of vehicle incidents, contact Tony Robinson at Austbrokers Phillips on (03) 8586 9333 or email tonyr@abphillips.com.au