Vehicle Coverage

One of the greatest and more devastating risks that organizations face today is the operation of vehicles for related business and events. Your organization can be held liable for damages whether it owns, leases, or borrows a vehicle, or has volunteers and staff members who use their own personal vehicles for transportation. On a regular basis, we read reports and handle transportation-related claims that involve serious injury and death. More often than not these accidents involve unsafe vehicles and practices. Vans and cars in disrepair, nonuse of seatbelts, driver fatigue, and things that distract drivers are all cited as causes of accidents. To help reduce vehicle risks, the GuideOne Center for Risk Management offers the following information for your consideration.

The Importance of Protection

• A large number of liability claims against organizations often result from vehicle accidents. Claims can be devastating if an accident involves a bus or van.
• Protection is needed against negligent driving, operation, and entrustment. (Example: The driver has no license or a history of substance abuse.)
• A business automobile insurance policy can cover any vehicle your organization owns. It will cover damage to the vehicle, injuries, and damage to other property.
• Non-owned vehicle coverage is also needed for situations where the organization controls the list of pickups (of children or youth) by volunteers’ personal vehicles for organizational activities.
• In addition to general liability coverage, a commercial umbrella policy with $1 million of coverage or more is recommended.

Preventive Measures to Reduce Vehicle Risks

• Form a transportation committee consisting of staff, drivers, maintenance workers, and parents.
• Adopt a written transportation policy.
• Check driving records of all current and potential staff and volunteer drivers.
• Remember that more accidents occur with drivers under age 25 and over age 70.
• Train drivers on safe vehicle operation.
• Assign responsibility for vehicle maintenance.
• Ensure consistent pre- and post-trip inspections and semiannual inspections with a qualified mechanic.
• Only use non-owned vehicles that pass a strict safety inspection.

Note: If operating 15-passenger vans, refer to the 15-Passenger Van Fact Sheet.

© 2024 GuideOne Insurance. GuideOne® is the registered trademark of the GuideOne Insurance Company. All rights reserved. This material is for informational purposes only. It is not intended to give specific legal or risk management advice, nor are any suggested checklists or action plans intended to include or address all possible risk management exposures or solutions. You are encouraged to retain your own expert consultants and legal advisors in order to develop a risk management plan specific to your own activities.