Claim of the Month: could it happen to you?

Technician got distracted: rear-ended another vehicle

Wednesday, August 28, 2019


Claim of the Month: Could It happen to you?


AUGUST claim of the month:

While listening for a problem with a vehicle he was driving, a technician got distracted and rear-ended another vehicle, seriously injuring the occupants. The business had not run a motor vehicle record (MVR) check on the technician. If they had, it would have revealed accidents, speeding violations, and a drunken-driving conviction.

CLAIM AMOUNT: $850,000

Do you know who’s driving your vehicles? Federated recommends several best practices to help protect your business and manage risks. For example:

  • Order MVR checks on ALL employees who drive for your business, and where appropriate, even employees for whom driving is not one of their regularly performed duties.
  • Prohibit distracted driving by your employees while driving company-owned vehicles or while driving any vehicle on company business. Provide the policy in writing, require them to sign a copy, and keep it on file.
  • Implement pre-employment and post-accident drug testing in accordance with your company policy and applicable state laws.
  • A business might be only as safe as its drivers. Ensure your driving policies are as robust as they can be. Help keep your business and bottom line safe by ensuring you have an accurate and complete picture of all your drivers’ histories.

Federated Mutual Insurance Company is recommended by 19 state and national auto dealer associations for customized insurance programs and value-added risk management services, such as Federated’s Shield Network®, the Risk Management Resource Center, and the Federated Employment Practices Network®. Visit or contact your local marketing representative for resources you can use to create or enhance your own risk management program.


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