FEATURES
SECTOR FOCUS: MOTOR FLEETS
PROTECTING A MOBILE WORKPLACE Allianz Australia’s head of motor, Brett Lamond, points to statistics revealing that a person who drives for work is twice as likely to be involved in an accident, and that the chance of that accident being fatal is higher. Lamond’s team recently shared five tips regarding the management of a mobile workforce. Lead by example Risk management will only be effective if those responsible for its institution are genuinely invested in ensuring their drivers’ safety. Messages in policy documents and other communications should reinforce to drivers the business’s investment in protecting employees’ safety.
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Have the right policies and procedures in place This includes a driving policy containing the business’s safety values, procedures and policies, which clearly communicates expectations and behaviours; and undertaking workplace incident reporting and management reporting.
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Get driver selection right the first time Have a sound recruitment process in place that assists the business in protecting itself from recruiting higher-risk drivers.
3
Familiarise your drivers with their vehicles Recognising that not all vehicles are the same, new drivers should have the opportunity to familiarise themselves, prior to driving, with new technology and equipment for use in-vehicle.
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Be accountable Businesses should ensure that managers appreciate their responsibility for employees’ day-to-day safety and are held accountable for any non-compliance.
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Source: Brett Lamond, head of motor, Allianz Australia, The Mobile Workplace
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is a clear indication that drivers are behaving in a way that could be a risk to themselves or others and the business does not regularly review the data or take appropriate action when required. “Telematics has great potential; however, businesses should seek legal guidance before proceeding.”
Conversation points It’s obviously essential that brokers ask the right questions when conversing with fleet operator clients to accurately ascertain their risk exposures. Atkins reinforces the need for brokers to know precisely what’s in a
Australian dollar increases costs of vehicles’ accessory imports”, Atkins says. QBE’s spokesperson reports that some brokers tend to underestimate the level of ‘Dangerous Goods’ cover clients require. “Placarded loads of dangerous goods incur a minimum statutory requirement of $5m per vehicle, to cover personal injury, property damage and clean-up costs,” the spokesperson says. “This means that a B-double vehicle carrying dangerous goods on both trailers would require Dangerous Goods Liability insurance for $5m per trailer.” On the subject of broker conversations with clients, Matthew Summers, account manager
“Fleet operators need to be educated about claims inflation, with the cost of repair and replacement of modern vehicle accessories gradually increasing” Tim Atkins, Marsh and McLennan Agency client’s fleet, particularly if that fleet includes non-standard vehicles, such as cranes, tractors and forklifts. “A broker needs to identify the uses for these vehicles so that they are correctly listed and understood by the insurer,” Atkins says, adding that they should also discuss the level of deductible a client is willing to manage. “While most are happy with the industry standard, some might opt to accept a higher level of risk to reduce their premium spend,” he says. “Fleet operators also need to be educated about claims inflation, with the cost of repair and replacement of modern vehicle accessories gradually increasing, and the importance of informing their broker about any modified or imported vehicles that are in the fleet.” Brokers should also “communicate the effects of currency fluctuation, as a weakening
in Willis Towers Watson’s corporate team, says: “The one thing we would emphasise is the need to commence the renewal process early, and for brokers to be across major claims and loss ratios.” Atkins says insurers are generally willing to consider the attractiveness of a client’s fleet insurance against the opportunities of their broader insurance program, so it is up to a broker to engage with underwriting specialists across insurers. “Catastrophe exposure is another element of fleet insurance where a broker can add value,” he says. “For example, some fleets are only used during business hours and parked off-premises at other times, which could expose their fleet to hail, flood or fire. This is a good opportunity for brokers to offer risk management strategies to lower their clients’ risk profile.”
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