WorldWide Drilling Resource

Last month, I mentioned the importance of screen- ing all drivers by running a motor vehicle report or MVR. An MVR will show that an individual has a valid driver’s license and is maintaining a safe driving record. Insurance companies often exclude coverage on em- ployee drivers with excessive amounts of speeding tickets, moving violations, and DUIs (Driving Under the Influence) in their past. This limits the risk posed by these individuals to the insurance company, and keeps the employer’s insur- ance cost to a minimum. Regardless of where you do business, an insurance company has two basic choices: 1. Accept your employee with the poor MVR, increase your rate, and charge you a premium appropriate for the increased driving risk. 2. Decline to offer your company insurance, period. What does this mean to you, the employer? Employee MVRs and driving history matter. An employee’s driving history impacts that employee’s value and should be carefully taken into consideration before making a hiring decision. Your current employee’s personal MVR and driving habits will directly affect your auto insurance rates and premium. Your company’s insurability is on the line. One bad MVR could cause an insurance company to not want your business or discontinue doing business in the future. If your commercial insurance package is split between multiple companies, you may be subject to coverage gaps, protection issues, and unseen costs. Worst-case scenario, the employee with a poor MVR causes an accident prompting a lawyer to go after your personal assets. We encourage you to choose your employees carefully. Run MVRs before making a hiring decision. The small expense you may incur to gather MVR information on your drivers is far less than the amount of money you may need to spend in the event of a claim related to a bad driver. There is a release form the driver needs to sign to grant you permission to pull the report. Your insurance agent should be able to procure this form for you if you don’t already have one. Additionally, some insurance agents will run MVRs free of charge for clients. Make sure to check with your agent during the hiring process and ask that your potential employee is screened before making a final hiring decision. Insurance companies will typically check MVRs for your current employees at each renewal and report to your agent if there is an issue. Kyle Kyle Rehme may be contacted via e-mail to michele@worldwidedrillingresource.com Kyle Rehme uses his personal knowledge of the water well, drilling, and environmental in- dustries to provide cus- tomers with practical insurance solutions. The Real Value of Employee MVRs by Kyle Rehme VolkBell Property & Casualty Insurance, LLC , . *#! ' , , . &#," 1 0% "& 1 * ', &#," (%$ %% *() *,0 +- %,0 '+-* ' *#%% *+ 1 '- ,-* *+ 1 -))%# *+ 1 '!#' *+ 1 ('+-%, ',+ 1 , * %% 1 ,"( # 1 '.#*('& ', % 1 (," *& % 1 (' - ,(* (% *#%% *+ 1 #% # % *.# + 1 , * -&) *.# ) #* (',* ,(*+ /,(' * (*, (%%#'+ 60 JANUARY 2016 WorldWide Drilling Resource ®