What is Fleet Risk Management?

A fleet is a group of vehicles, such as cars and trucks, owned by a business, government, or other organization. Fleets are commonly used by organizations that depend on transportation for the delivery of goods and services, communication with clients and entities in various geographical locations, and other operations that allow a business to function. Fleet risk management refers to services provided to businesses that own fleets to reduce the chance and impact of undesirable events and occurrences, such as accidents, injuries, damage to vehicles, and illegal activities. Some common functions of fleet risk management include commercial insurance, regulatory compliance, safety training, and driver background checks.

Commercial insurance is often a large part of fleet risk management. In most cases, this insurance is purchased by organizations that own fleets in order to help protect them from liability when one of their vehicles is involved in an accident. This kind of insurance can also help provide fleet organizations with workers' compensation funding, which must be paid in some locations to workers who have been injured on the job.

Regulatory compliance is another important aspect of fleet risk management. In many locations, commercial vehicles, especially those carrying potentially dangerous products, must follow certain laws regarding structure and size, as well as laws that dictate how they must behave on the road. A risk management firm can help a fleet organization to stay within these regulations and to keep up to date with new compliance issues that may require some kind of restructuring of policy.

Many fleet managers prefer to provide all of their drivers with safety training courses, since this can be a way to significantly reduce the chances of accidents and other costly events occurring on the road. Fleet risk management often provides safety training for drivers. In some cases, this training may be in preparation for company sponsored tests that job candidates must take before being hired and given access to fleet vehicles. Some fleet managers may simply choose to periodically provide safety training so that all fleet drivers can be reminded of necessary precautions and practices.

Another key aspect of fleet risk management can be the performance of background checks on potential employee drivers. Individuals who have poor driving records tend to be more at risk of breaking traffic laws or getting into accidents again in the future. Background checks can help a fleet manager to be sure that all of his or her drivers have a history of following laws and practicing safe driving behaviors.