HNOA Loss Control
In our previous blog post, we covered the importance of Hired and Non-Owned Auto (HNOA) coverage. It is just as important to have risk management and loss control procedures in place as it is to have HNOA insurance. After all, you’d want to be able to prevent and reduce exposure, before a serious claim ever materializes.
There are many risk management steps that a company can take to lower their HNOA exposure. Most carriers will require that businesses preform motor vehicle (MVR) checks at least on an annual basis to ensure that their employees do not have any major driving violations. Based on the results of these records, the carrier will have guidelines and advise on who is an acceptable driver. The purpose is simple – when you avoid hiring “bad risks”, you then lessen your exposure and the potential for claims.
In addition to the risk management requirements from the carrier, there are other simple loss control procedures that you can put in place to reduce your HNOA exposure. Some of the procedures that you can put in place are:
- Establish an accident reporting system
- Make sure that employees maintain their vehicles and keep them suitable for driving
- Require that employees keep their own auto liability coverage above the state limits
- Outline and explain driver safety policies (eg. seatbelts, not being distracted, dashboard phone holders, etc)
- Provide defensive driver training
The sheer number of employees on the road can represent substantial risks for an insured. It is imperative to put controls in place that will minimize the risks and help avoid negative outcomes. For additional information on how HNOA insurance can protect your business, give MPL Risk a call at 267-888-4790.
