April 2005  


Are You Sitting On A "Liability" Time Bomb?

If you have take-home fleet vehicles or even simply have a headquarter-based fleet, you could be taking a very sobering gamble if you don't have a GPS solution.

Left unchecked, your drivers could cripple your business with reckless or risky behaviors. If your drivers get in an accident, drive drunk or commit a crime in a company-provided vehicle, your business is liable for monetary damages and more!

Are you aware of the true extent of your liability as an employer? Consider this multiple choice question below:

 

What do you think your liability is if drivers misuse your vehicles?   

  a.    zero liability
b.    25% liability
  c.    70% liability
  d.    100% liability
 
You may be surprised to learn that the correct answer is "d"--Your company is 100% liable for accidents or crimes committed by drivers using your company vehicles. Worse yet, if a crime is committed by a driver using your fleet vehicle, your insurance company may refuse to cover any damages. The courts can go after your personal assets, including your business, personal income, savings accounts and even your home. Moreover, your insurance provider will likely increase your premium or possibly non-renew your policy.

The following are two true examples of what can happen when your drivers engage in risky behaviors with your vehicles:

Drunk Driving: One business owner explained that he had not been monitoring the night and take-home use of his company vehicles. His administrative assistant typically operated their GPS fleet management solution, but he had a serious situation develop that required him to find out where his driver had been the previous night. This driver had been arrested for Driving Under the Influence (DUI) in the company van.

"...the owner discovered that his driver had been
at a local bar for more than 5 hours..."

The owner was sent to an impound lot to retrieve his company vehicle that morning. By reviewing the vehicle stops for the previous night, the owner discovered that his driver had been at a local bar for more than 5 hours prior to being pulled over on the way home. The owner then "edited" the name of the bar in the location column and pulled up a history of that location for the previous 3 months. He was shocked by what he found.

Not only had that driver been frequenting this bar at least 3 times a week but, two of his other drivers had been using their company vehicles to meet at this same bar regularly on their way home from work!
In this case, the owner was extremely fortunate. He discovered this serious liability danger before any true disaster occurred.

Losing Everything: A company owner in Savannah, Georgia suffered tragic consequences that could have been avoided if he had just installed a GPS fleet management system. Arguing that he knew his drivers and was certain that they never engaged in risky behavior with his vehicles, this owner rejected the idea of using a GPS solution. Sadly, his false assumptions cost him his business.

Unbeknownst to this owner, one of his employees in Savannah was regularly visiting a girlfriend in Atlanta, Georgia, nearly five hours away. On one such unauthorized trip, this driver was intoxicated and using the company vehicle to tow his boat across the state. Leaving his girlfriend and heading home, the driver lost control of his vehicle and slammed into a car carrying a family of four. The driver survived but the innocent mother, father and their two children died at the crash scene.

"The owner's company was held 100% liable for damages
resulting from the driver's crime, because
he was using a company vehicle."

The owner's company was held 100% liable for damages resulting from the driver's crime, because he was using a company vehicle. Frantic, the owner reconsidered installing a GPS fleet management system for his business. But it was a case of too little, too late.

The owner's insurance covered only a small fraction of the final judgment, and he was forced to declare bankruptcy. During the bankruptcy hearing, an incorporation violation was revealed, opening the owner's personal assets to seizure by the court. He eventually lost everything; his business, his bank account, and even his new house.

With a GPS fleet management system, your business can have the ability to accurately monitor your vehicles and significantly minimize your liability concerns. You insurance company may also offer you lower rates if you install a GPS solution.

© 2005 FleetBoss Global Positioning Solutions, Inc. All rights reserved.