Every business success must come with a risk. Suffering losses in an automotive company are brought by many different factors. One of them is accidents. The chances of experiencing a loss are what is called a business risk and to minimize or completely avoid such kinds of risks, there are certain measures that need to be put in place. Automotive business risks should be the least of your company’s contributor of loss-making in business. This is because technology has improved with time and accident occurrences have greatly reduced with time.
Below are the five automotive risks that could cause your business a fortune and how to reduce them.
- Employee use of personal vehicles.
Some companies allow employees to use their personal vehicles to carry out the duties of the company. As much as this cuts the cost of hiring vehicles or buying cars, the company is risking a lot in case something terrible happens to the vehicle. In the case of an accident, a company may incur damage costs depending on the type of the insurance coverage of the car. To avoid such incidences, the company has to come up with standards that have to be met by an employee and the car are accepted to the company.
- Driving while under the influence of drugs or using a mobile phone.
It is not a good practice to drive while intoxicated because drugs impair the correct judgment of a driver. Most of the accidents are being caused by drunk driving and driving while intoxicated. Use of mobile phones and receiving phone calls while driving is also hazardous. This kind of risk can be avoided by stating it clear in the company’s policy or rules and regulations that no company driver should be allowed to drive the company car while intoxicated. When it comes to phones, they could be used in hands-free mode during driving.
- Backup Cameras.
Accidents do occur when the driver is unable to see what is coming or standing behind his car as he drives or reverses. Fitting all your business car with backup cameras could save a lot when it comes to hitting objects that are behind a car as it reverses or parking. There are many kinds of backup cameras to choose from. The best one has a wider view and a night sensor. If you are looking for a backup camera to buy for your company cars, then you better consider checking for those qualities first.
- Poorly maintained cars
A company should avoid using cars that are in bad state. All the company cars should always be taken to the auto garages for servicing on a regular basis. You don’t want to hear that your company’s trailer lost control due to failed breaking system.
- Knowing who you employ
A company should avoid employing drivers who have been involved in hit and runs or infractions in the past. The best thing to do is to check for their past records before making them be a part of your company.
Having employees who follow strictly to the company policy will greatly save you a lot of money.