Are Your Drivers Qualified? Best Practices for Driving Responsibly

Dennis Shinault, CDS Director of Loss Prevention & Safety Services

Protective Insurance Company Sagamore Insurance Company

Carmel, Indiana www.baldwinandlyons.com

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About Baldwin & Lyons, Inc. Foundedin1930,Baldwin&Lyonsspecializesinmarketingandunderwritingliabilityinsuranceforthetransportationindustryandmulti-lineworkers’compensationOurnicheis:•  LTL/TLtrucking,packagehandlingandpublictransportation•  Workers’Compensationinsurance•  Learnmoreatwww.baldwinandlyons.com

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Presentation Outline •  Fleets&MotorCarriersvs.AllOtherBusiness•  Regulatedvs.Non-RegulatedFleets•  MinimumLossPreventionStandards•  DriverQualiTicationFile•  NewDriverRevaluation•  CorporateSafetyManagement•  DistractedDrivingPolicyinPlace?•  PostCollisionInterviews•  TelematicsandOn-BoardSafetyElectronics•  VehicleMaintenance•  PrepareYourself

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Regulatory Compliance

Your Insurance Company

YourCompanyCulture

Fleets & Motor Carriers vs. All Other Business

• LargeTleets,smallTleets,carTleets,servicevehicleTleets,regulatedTleets,non-regulatedTleets– Allhavepotentialforaloss– Biggervehicle=biggerlosspotential?– Punitivedamagesarevolatile

∘  Negligenthiring∘  Negligententrustment∘  Negligentsupervision∘  Negligentretention

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Fleets & Motor Carriers vs. All Other Business

•  ArtisanandcompanycarTleetsmaynothaveasafetydirector

•  OSHASafetyDirectorvs.DOTSafetyDirector• Hireasadriver,notjustaworker•  VehiclecrashesaretoponOSHAworkplaceinjuries•  Drivingpersonalvehiclehassameconsequences

–  Contingentliabilitycanfollowtocompany– HavesomequaliTicationsandtrainingasifdrivingcompanyownedvehicle

•  Canfamilymembersdrivecompanycars?

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Regulated vs. Non-Regulated Fleets •  Isthereadifference?•  DOTregulatedvehicles:

–  Grossweightorrating,includingcombinationof10,001lbsormore

–  Designed/usedtotransport8passengers—includesdriver—forcompensation

–  Designed/usedtotransport15passengers—includesdriver—notforcompensation

–  Transportingplacardedamountofhazardousmaterials—regardlessofvehiclesize

–  DonotconfusethiswithCDLrequirements:∘  Ofover26,001pounds(singleorcombination)∘  16ormorepassengersincludingdriver∘  Placardedamountofhazmats

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Regulated vs. Non-Regulated Fleets • FederalMotorCarrierSafetyAdministrationwebsite:www.fmcsa.dot.gov

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Regulated vs. Non-Regulated Fleets •  SafetyandFitnessElectronicRecords(SAFER)System:http://safer.fmcsa.dot.gov/CompanySnapshot.aspx

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Regulated vs. Non-Regulated Fleets •  SMS-SafetyManagementSystem

– BehaviorAnalysisandSafetyImprovementCategories-BASICS∘  UnsafeDrivingBASIC∘  HoursofServiceComplianceBASIC∘  DriverFitnessBASIC∘  ControlledSubstanceandAlcoholBASIC∘  VehicleMaintenanceBASIC∘  HazmatComplianceBASIC-Notpublic∘  CrashIndicator-NotpublicbuthaslistingofallDOTrecordableaccidents

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Regulated vs. Non-Regulated Fleets • DoescompliancetoDOT/FMCSAmakeasafetyprogram?

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Minimum Loss Prevention Standards •  Includepersonalusestipulationsandrestrictions•  Minimumdrivereligibility:

–  Age–  Drivingexperienceonsimilarequipment–  Studentdrivers&driveradvancement

∘  EntryLevelDriverTraining-FMCSRPart380.503  DriverqualiTication,disqualiTication,medicalrequirementsandresponsibilities

  HoursofService  Driverwellness—healthmaintenance,exercise,diets,alcoholabuse  Whistleblowerprotection  Thisisnotadrivertrainingprogram

∘  CDLschoolnotadequate∘  NeeddriverTinishingprogrambasedontheequipmentyouexpectthemtodrive

–  MVR&Pastcollisions•  Neverpermitdeviation

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Driver Qualification File • DOTapplicationisdifferent• RevieweachdocumentinthedriverTileonitsownmeritandasawhole

• WorkhistoryveriTication– DOT—showmultipleattemptstoobtain– Artisanjobs—documentdrivingperformanceinadditiontojobperformance

– ObtainpriortohireversusFMCSR

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Driver Qualification File • MVR

– Obtainfor:∘  Currentlicense∘  Anylicenseheldinpast36monthsatleast∘  Annually∘  Postcollision—frequentlyneglected∘  Reasonablesuspicion

– ReceivepriortoTirstdrivingassignment• Copyoflicense

– Requiredforregulatedcarriers– Privacyandsecurityissuefornon-regulatedcarriers?

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Driver Qualification File • Roadexaminations

– Companyandpersonalvehicles– Onequipmentsimilartowhattheywillbedriving– Administerineveningandbadweather– Performcommentary

∘  Vehicleinspection∘  Drivingperformance

– UseacertiTiedtrainer–  Includecompanycollisiontrends– Checkrideseverytwoyears–atleast– Observeentering&exiting=3pointsystem(largevehicles)

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Driver Qualification File • Writtenexaminations

– Coverorientationtopics– Notrickquestions– Reviewincorrectresponses– Useasanevaluationofthetrainer

• Physicalexaminations– Usecompanyselectedphysicians– MustfollowDOTrequirements(ifregulated)–  Ifusingnon-companyphysicians-verifytheexam– Regulatedcarriersareresponsibleforexamresults

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Driver Qualification File • Drugandalcoholscreensneeded?

– Keepregulatedandnon-regulateddriversinseparaterandompools

– Postcollision∘  Haveanationwideprogramestablished∘  Documenttimeconstraintnon-compliance

– Reasonablesuspicion∘  Havemultipletrainedobserversoneachshift∘  Donotletworkerdrivetotestsight

– Hairfollicletest?

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New Driver Revaluation • 30,60,90,180days• Review

– CSAcompliance– Hours-of-servicecompliance– MVR– Operationscompliance– Re-roadtest,includingvehicleinspections– Telematicsreports– Fatigue– Distracteddriving– Customerfeedback

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Corporate Safety Management •  Safetymeetings

– Haveregularmeetings–makesureitincludesdrivingsafety

–  Includedriversand:∘  Management∘  Dispatch∘  Maintenance∘  Sales∘  Otherdepartments?

•  Safetydirectorshouldattenddriverorientedsafetyconferences

•  Safetydispatchlock-outprogram– Anydepartmentcanlockout– Onlysafetycanunlock

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Distracted Driving Policy In Place? • Bestpolicyisnouseofcellphonewhiledriving• Handsfreeisnottheanswer

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Post Collision Interviews • Determinerootcausefactors• Provideretrainingandcoaching• Conductnewroadexamination

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Defensive Driving Programs • NationalSafetyCouncil

– ProfessionalTruckDriver– DDC(carandutilityvehicles)

∘  Instructor∘  On-line

– SmithSystem– Companydeveloped

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Telematics and On-Board Safety Electronics

• Beingusedasadispatch/locatorsystem?• Usedtomonitorandcorrectdriversafebehaviorperformance?

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Prepare Yourself

• UseA.M.BestUnderwritingandLossControlGuides

• DifferentFleetshaveDifferentExposures• Audityourprogramasifyouwere:

– Safetydirector– DOTcomplianceofTicer–  Insurancecompany– CompanyCEOorowner– Plaintiffattorney– Personpurchasingthecompany– Personalinsurerofthecompanyatalllevels

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Questions & Comments?

Thank You! And

Please Use & Share What You Have Learned

Dennis Shinault, CDS Director of Loss Prevention & Safety Services

Protective Insurance Company Sagamore Insurance Company

Carmel, Indiana www.baldwinandlyons.com

dshinault@baldwinandlyons.com(317)429-2692

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