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ARI Blog: Article

Should Restoration Companies Check MVRs

Automobile liability poses a significant potential loss exposure to all business entities. Not just from a claims standpoint, a circumstance could arise that could exhaust all insurance limits and further put the company's assets at risk. Because all drivers carry the name and, therefore, the company'scompany's identity, it is essential that you, the employer, to the best of your knowledge and ability, understand the excellent background of those employees you entrust with your vehicles.

Consider the logos painted on the side of your cars as dollar signs if they are involved in an at-fault accident…especially if you’ve hired a poor driver with a history of poor driving habits. You "established" operators would be best if you have a policy and a procedure for evaluating your drivers to ensure you hire good drivers to represent your company on the road.

Can you tell by looking at someone that they are a good driver? Of course not! The motor vehicle report (MVR) is a standardized report (by state) that accounts for the driving records of the individual—moving violations, accidents, DUI, etc., are all documented. An MVR will verify that your present or prospective driver has a valid operator’s license and a “satisfactory” driving record.

Violations on an MVR vary significantly and are identified differently by changing states. They reflect a person’s driving habits and, to a degree, indicate future driving habits/practices. As infractions can happen at any time and most employees do not report them when they occur, records should be run annually (usually at renewal time) and reflect a 5-year basis to demonstrate due diligence purposes on the company's part annually.

Your company automobile usage policies should define the policies and procedures as they apply to all current and prospective employees who have access to or operate company-owned vehicles or who use hired non-owned cars for company purposes. It should be spelled out very clearly in your employment policy manual. The policy should contain: requirements for a clean or valid driver's license, and usage parameters should be clearly stated; steps for due process should be outlined, and avenues for discipline, correction, and resolution should be listed.

As always, we suggest that you seek the advice of counsel in your specific states before considering policies to be sure they reflect particular state and federal law, don'tperson's violate any union agreements, and that they bring about the desired effect on security and the safety of the company and the employees.

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