Managing Risk: Are Your Commercial Motor Vehicle Drivers Properly Licensed And Insured?

Motor vehicle accidents are one of the leading causes of on-the-job injury and death. This exposure can result in significant liability and workers' compensation costs for employers. In order to manage the liability risk of commercial drivers, employers must ensure their employees hold the proper commercial drivers license (CDL) and ensure their business automobile policies cover their drivers for the potential liability resulting from on-the-job accidents. This article discusses the proper classifications established by the U.S. Department of Transportation (DOT) for drivers of commercial motor vehicles. A brief discussion of state laws and what insurance should be maintained to protect the employer from potential loss is included.

It is the obligation of employers to maintain a workplace free of hazards that can result in serious injury or death. The Occupational Health and Safety Administration (OSHA) enforces this duty, and if an employer fails to maintain its company vehicles to ensure safety, an action can be brought against them. Therefore, establishing driving policies, including making sure that your drivers are properly licensed and fit to drive the vehicle they operate, is an essential part of any good employer's driver safety policy.

Who needs a CDL? While any person driving a motor vehicle is subject to state traffic and motor vehicle laws, people driving "commercial motor vehicles" are subject to further licensing requirements under federal and state law, and can be penalized for their failure to comply with these laws.

Federal law. There are three types of CDLs: Class A, Class B and Class C. Under federal law, a "commercial motor vehicle" is defined as 1) any single vehicle having a weight rating of more than 26,000 pounds, 2) any trailer with a weight rating of more than 10,000 pounds, if the gross weight rating of the combined vehicle(s) is more than 26,000 pounds, 3) any vehicle designed to transport at least 16 passengers, including the driver, 4) any public school bus regardless of size, or 5) any motor vehicle used to transport hazardous materials. Drivers must have a commercial drivers license designating the driver as qualified to drive a particular class of vehicles. The vehicles above are divided into three classes: A, B, and C.

CLASS A: Any Tractor/Trailer combination that has an actual weight, declared weight or Gross Vehicle Weight Rating of 26,001 lbs. or more, provided towed vehicle is more than 10,000 lbs.

CLASS B: Any single motor vehicle that has an actual weight, declared weight or Gross Vehicle Weight Rating of 26,001 lbs. or more, or any such vehicle towing a vehicle of 10,000 lbs. or less.

CLASS C: Any motor vehicle that has an actual weight, declared weight or Gross Vehicle Weight Rating of less than 26,001 lbs. when endorsements "H" or "P" would be required on the driver license OR any combination of motor vehicles where the towing vehicle is less than 26,001 lbs. Gross Vehicle Weight Rating and the towed vehicle has a Gross Vehicle Weight Rating of 10,000 lbs. or less, but together they weigh 26,001 lbs. or more.

Possession of the higher CDL license generally allows a licensee to drive vehicles in the lower classes.

To determine what CDL an employee needs to lawfully operate a particular vehicle, follow the instructions in Chart 1 There are also certain exemptions. Plus, keep in mind that under federal law, an employer must test employees who hold CDLs and who perform safety-sensitive jobs for drugs and alcohol.

We build competencies in our staff, and offer self-storage operators access to, not only knowledgeable and concerned professionals, but risk management services to help you manage the triggers that drive your risk.

State laws. Every state must adopt the national standards for issuing CDLs or risk losing federal funding. These standards require states to impose fines on employers that knowingly authorize unlicensed or unqualified drivers to operate commercial motor vehicles. State law also governs the size and weight of vehicles and loads. Commercial drivers and their vehicles are subject to weighing and inspection, and can be ticketed by various federal, state and local law enforcement officials for being too big, too heavy, defective, or improperly licensed or permitted. Various states require employers to take proactive steps to verify and monitor driver qualifications and driving records of their employees.

What must employers do? Employers must first develop and implement effective policies and procedures for hiring, training, and assessing job performance of employees who will be driving their commercial vehicles. Background checks, drug testing and other tests must be performed in accordance with federal, state and local laws, and drivers must have or obtain the correct CDL. And, as with any good risk management program, the proper business automobile coverage and workers' compensation coverage must be obtained to protect your business from potential loss due to third party claims, loss to your motor vehicles, and workers' compensation costs.

Take the necessary steps to ensure your company's drivers are properly trained, licensed, and insured; this is the best way to safeguard your business, your employees, and your motor vehicles. Review the three different classes of licensure and make certain your drivers are appropriately licensed. Additionally, your company should educate and train your commercial drivers in traffic laws and company policy; furthermore, protect your business by adequately insuring your drivers and your vehicles. With these sound measures, you will reduce the liabilities commonly associated with commercial motor vehicle drivers.

Provided by: HRTutor.com and The Human Equation Email this article Managing Risk: Are Your Commercial Motor Vehicle Drivers Properly Licensed And Insured? By: Anita Setnor Byer, President
Motor vehicle accidents are one of the leading causes of on-the-job injury and death. This exposure can result in significant liability and workers' compensation costs for employers. In order to manage the liability risk of commercial drivers, employers must ensure their employees hold the proper commercial drivers license (CDL) and ensure their business automobile policies cover their drivers for the potential liability resulting from on-the-job accidents. This article discusses the proper classifications established by the U.S. Department of Transportation (DOT) for drivers of commercial motor vehicles. A brief discussion of state laws and what insurance should be maintained to protect the employer from potential loss is included. It is the obligation of employers to maintain a workplace free of hazards that can result in serious injury or death. The Occupational Health and Safety Administration (OSHA) enforces this duty, and if an employer fails to maintain its company vehicles to ensure safety, an action can be brought against them. Therefore, establishing driving policies, including making sure that your drivers are properly licensed and fit to drive the vehicle they operate, is an essential part of any good employer's driver safety policy. Who needs a CDL? While any person driving a motor vehicle is subject to state traffic and motor vehicle laws, people driving "commercial motor vehicles" are subject to further licensing requirements under federal and state law, and can be penalized for their failure to comply with these laws. Federal law. There are three types of CDLs: Class A, Class B and Class C. Under federal law, a "commercial motor vehicle" is defined as 1) any single vehicle having a weight rating of more than 26,000 pounds, 2) any trailer with a weight rating of more than 10,000 pounds, if the gross weight rating of the combined vehicle(s) is more than 26,000 pounds, 3) any vehicle designed to transport at least 16 passengers, including the driver, 4) any public school bus regardless of size, or 5) any motor vehicle used to transport hazardous materials. Drivers must have a commercial drivers license designating the driver as qualified to drive a particular class of vehicles. The vehicles above are divided into three classes: A, B, and C. CLASS A: Any Tractor/Trailer combination that has an actual weight, declared weight or Gross Vehicle Weight Rating of 26,001 lbs. or more, provided towed vehicle is more than 10,000 lbs. CLASS B: Any single motor vehicle that has an actual weight, declared weight or Gross Vehicle Weight Rating of 26,001 lbs. or more, or any such vehicle towing a vehicle of 10,000 lbs. or less. CLASS C: Any motor vehicle that has an actual weight, declared weight or Gross Vehicle Weight Rating of less than 26,001 lbs. when endorsements "H" or "P" would be required on the driver license OR any combination of motor vehicles where the towing vehicle is less than 26,001 lbs. Gross Vehicle Weight Rating and the towed vehicle has a Gross Vehicle Weight Rating of 10,000 lbs. or less, but together they weigh 26,001 lbs. or more. Possession of the higher CDL license generally allows a licensee to drive vehicles in the lower classes. To determine what CDL an employee needs to lawfully operate a particular vehicle, follow the instructions in Chart 1 There are also certain exemptions. Plus, keep in mind that under federal law, an employer must test employees who hold CDLs and who perform safety-sensitive jobs for drugs and alcohol. We build competencies in our staff, and offer self-storage operators access to, not only knowledgeable and concerned professionals, but risk management services to help you manage the triggers that drive your risk. State laws. Every state must adopt the national standards for issuing CDLs or risk losing federal funding. These standards require states to impose fines on employers that knowingly authorize unlicensed or unqualified drivers to operate commercial motor vehicles. State law also governs the size and weight of vehicles and loads. Commercial drivers and their vehicles are subject to weighing and inspection, and can be ticketed by various federal, state and local law enforcement officials for being too big, too heavy, defective, or improperly licensed or permitted. Various states require employers to take proactive steps to verify and monitor driver qualifications and driving records of their employees. What must employers do? Employers must first develop and implement effective policies and procedures for hiring, training, and assessing job performance of employees who will be driving their commercial vehicles. Background checks, drug testing and other tests must be performed in accordance with federal, state and local laws, and drivers must have or obtain the correct CDL. And, as with any good risk management program, the proper business automobile coverage and workers' compensation coverage must be obtained to protect your business from potential loss due to third party claims, loss to your motor vehicles, and workers' compensation costs. Take the necessary steps to ensure your company's drivers are properly trained, licensed, and insured; this is the best way to safeguard your business, your employees, and your motor vehicles. Review the three different classes of licensure and make certain your drivers are appropriately licensed. Additionally, your company should educate and train your commercial drivers in traffic laws and company policy; furthermore, protect your business by adequately insuring your drivers and your vehicles. With these sound measures, you will reduce the liabilities commonly associated with commercial motor vehicle drivers.
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