One of the most crucial pieces of information submitted to underwriters when quoting Non-Emergency Medical Transportation are the drivers’ MVRs (Motor Vehicle Records). Employees’ MVRs provide the underwriter with a representation of minimum hiring standards, as well as an indication of the characteristics of the employees driving the insured vehicles. Insurance underwriters also know that good MVR’s are indicators of how well an owner runs his or her company from a safety prospective. If an owner only hires those with clean MVR’s then there is a good chance that the company is run with a minds eye towards risk management. If an owner hires those with bad MVR’s, it is assumed that management does not focus that closely to risk management objectives. If a driver has an MVR with multiple citations (speeding, improper lane change, failure to yield, accident, etc.) there is a high probability that their record will negatively influence insurance premiums, driving up company expenses.
One should not only consider the possibility of citation-heavy MVRs increasing insurance expenses, but if a driver has had multiple infractions in their past, their chances of causing an accident due to negligent driving is much higher. Loss control is another major factor when pricing insurance, and if the underwriter sees that your company has a high number of at-fault claims, prices are going to be much higher at the next year’s insurance renewal.
What Can You Do?
Drivers’ records play a very important role in the development of insurance premiums throughout the underwriting process, and the more written controls and guidelines your company has established for MVR standards, the better off your company will be when it comes to claims and premium rates. Examples of written controls and guidelines to have in place include:
- Driver Incentive Programs
- Management Safety Record Incentive Programs
- Driver Performance Reviews
- Safety Posters and Slogans
- Safety Manual or Handbooks
- Cell Phone Policy
- Return to Work Policy
- Post Hire Medical Questionnaires
- Sexual Abuse and Molestation Policy
A wise man once said, “When reviewing MVRs ask yourself this: ‘Would I want this person driving my family members around?’ ”
Please contact us for assistance in developing customized programs and to discuss the insurance needs for your company.
Author: Taylor Westbrook
