No matter the size of your business, handling a fleet of vehicles can be a complicated task. There are so many aspects to juggle when it comes to laws and legislation. There are the possibilities of accidents on the road, theft, vehicle breakdowns, and the safety of your drivers becoming compromised.
Fleet risk management helps you tackle all these concerns and makes sure you minimise the risk of accidents and legal action, keeping your business safe from penalties and lawsuits.
What is fleet risk management?
Fleet risk management is the protection of your vehicles and drivers, making sure correct practices are put in place to keep your workers and the company safe. The main goal is to keep your drivers safe out on the road, and to prevent the risk of accidents and legal action to avoid your company landing in heavy fines and the risk of legal prosecution. You want to make sure all the correct measures are in place to keep your drivers, vehicles and company safe.
It also means thinking of future accidents that could occur and being prepared for unexpected situations. By planning for unforeseen accidents, poor inspections, or the misuse of your property, you can minimise any problems that may occur. For more information, we’ve pulled together a complete UK fleet compliance guide.
Common fleet risks businesses face
There are countless incidents that can put your business at risk:
Driver behaviour
The Management of Health and Safety at Work Regulations 1999 require the proper risk assessments of your vehicles and drivers’ behaviour. This prevents liability when accidents occur, and hefty fines and loss of income when vehicles are damaged or misplaced. Take responsibility for the safety of your drivers and implement consequences if these guidelines are not followed. You can use mobile-based fleet management software to track your drivers’ behaviour out on the road.
Vehicle condition
Inspections should be made before and after the vehicle leaves the depot, and regular services, repairs and the replacement of parts should be implemented to increase the life of your vehicles. Drivers should also complete electronic vehicle inspection reports (DVIRs), and a detailed record should be kept of each vehicle you own.
Fuel costs
Vehicles that are not taken care of tend to use up more fuel, costing your company unnecessary amounts of money. Strong fleet risk management will save your company a huge amount of money in the long run, as your vehicles will need less expensive repairs and will be able to last for a longer period.
Compliance issues
Under the Health and Safety at Work Act 1974, businesses have a duty of care for their employees, and this stretches out to vehicle use and driver behaviour. By implementing good fleet risk management, you can help ensure your fleet meets all relevant compliance laws to avoid fines and legal issues.
Accidents
It’s estimated that 1 of 3 accidents on the road comes from work vehicles: a grim statistic that shows how legal, financial and human costs can decimate your business in an instant. It is not enough for drivers to have a licence. They must undergo stricter training that tracks their behaviour on the road. Accidents must also be reported immediately to avoid lengthy court cases and to establish firmer legal liability. If you would like more information on UK road safety insights for fleet managers, check out our blog on the Right Fuel Card website.
Driver-related fleet risks
It’s impossible to predict what is going to happen out on the road. But what you can do is make sure your drivers are complying with all the legal requirements and health and safety compliances. Something as simple as driver fatigue can land your company in a lawsuit should the vehicle end up in an accident. The monitoring of drivers’ habits and regular feedback about their driving conduct can make sure burnout doesn’t happen.
It’s also intuitive to keep track of the driver’s mileage in case you’re liable for future incidents. Companies that invest in their vehicles and drivers’ safety will always benefit from a drop in maintenance costs and fuel, as they require fewer emergency repairs and overall last longer on the road.
Regular driving licence checks are imperative to your company, and the driver’s safety, and avoid difficult legal problems should anything happen. The proper training also needs to be carried out on new hires to reduce the risk of accidents and allow you to not spend a large portion of your earnings on higher insurance. Refresher training should also be mandatory to make sure the standards of your drivers do not slip. This goes hand in hand with speciality training for drivers who are at a high risk, such as drivers who cover larger miles or have a history of accidents.
H2 – Vehicle and operational risks
To make the most out of your money and time, you want to get the most out of your vehicles. Having the correct insurance coverage is important for covering things like vehicle damage, loss, repairs, and even medical expenses should it come to that. You also want to make sure your vehicles are going through strict pre- and post-trip operator inspections, and they are planned in advance to reduce future risks. When you’re certain all the vehicles have passed inspection, it will increase uptime and the overall safety of the drivers out on the road and will prevent further compliance issues.
If there is ever a time one of your vehicles is not on the road, your business will suffer for it. This is why it’s of paramount importance to properly plan and schedule maintenance tasks to eliminate potential breakdowns, which could possibly compromise your drivers’ safety as well. It also makes sure your vehicles are ready to go as soon as you need them. Not all hits to your finances are as obvious as fuel costs. What if one of your vehicles were to break down? What would you lose in downtime, replacement vehicles and even reputational damage? Keeping your vehicles safe and within compliance laws is more than ticking a box – it’s about the well-being of your workers and everyone else out on the road. Once you have safer vehicles, you’ll have safer drivers and overall safer journeys.
How to manage and reduce fleet risk
If you want to begin a clear fleet risk strategy for your business, the best place to start is the Health and Safety Executive’s (HSE) Driving at Work guide, which summarises both the law and how you can meet its requirements. You can assess your own current performance and the performance of your workers alongside this guide.
Managing fleet risk should also be part of your everyday routine. To make sure your vehicles are roadworthy and your drivers are helping to fulfil obligations, they should be checking the brakes, tyres, wheel fixings, lights, mirrors and bodywork, just to name a few. These checks should be completed every day.
It’s also important to schedule specialised training for drivers carrying heavier loads and thorough training for new drivers, focusing on safe driving practices and risk management. The correct insurance is imperative for managing your risks as well. Consider purchasing fleet risk insurance to cover incidents like property damage, loss, and vehicle replacement. Medical insurance for your drivers would also be ideal in case of an accident.
Fuel management and fraud are huge problems for any-sized business. Here are a few ways companies reduce the risk of fuel fraud:
Set clear policies – Establish firm guidelines on fuel card usage, like restricting non-fuel purchases and daily spending limits.
Invest in secure fuel cards – Right Fuel’s fuel card has advanced features that deny access without a PIN and 24/7 card blocking request. You can explore the Right Fuel website to see for yourself how to keep your business protected from fuel card fraud.
Educate employees – Provide thorough training on fraud risks and how to report suspicious activity.
The role of technology in fleet risk management
Thankfully, today we have many technological aids to support our fleet risk management. Location monitoring allows fleet managers to keep track of their drivers’ route deviations and possible fuel theft. By visualising vehicle locations alongside fuel transactions, managers can track discrepancies and optimise their fleet usage through accurate records and data.
Telematics are another great way to improve driver safety. With dashcams and speed monitors, you can identify situations that have possibly put your drivers or the other drivers on the road at risk.
It’s incredibly difficult to manage a fleet when you don’t have all the information at your disposal.
Assigning a vehicle an identification number (VIN) in CMMS can help provide crucial information on the usage and maintenance of a vehicle throughout its life cycle. This means you can make smarter choices when it comes to the vehicle’s maintenance, making sure you’re always prepared.
When it comes to managing your fleet, fuel costs should be the least of your worries. Fuel cards open the doors to a smarter way to manage your fuel payments. You no longer need to manage receipts and expenses individually, allowing you more time to focus on more pressing matters concerning the safety and management of your fleet. You can track exactly what’s being spent and by whom, reducing the risk of theft and unsavoury driver behaviour. Apply for your Right Fuel Card now and make worrisome fuel management a thing of the past.
