The Importance of Driver License Review

When you direct an employee to driver on company business, you put your business on the line—legally, publicly, and financially. While the specifics may vary depending on the nature of your business and the way you interact with employee drivers, the reality remains the same: you have a strong interest in making sure the people driving on company business have up-to-date, appropriate licensure and all the associated skills and knowledge. Regular driver license review is crucial for this reason.

Competence. Putting aside all other issues, a driver license review allows you to confirm the basic competence of your employees if driving is necessary for your business. Even if you only need a driver to handle a normal vehicle with a standard license for your company’s purposes, it’s important to make sure they have a standard license — and haven’t lost it since the first time you checked for one reason or another. You don’t want to find out that you’ve been letting an unlicensed driver on the roads on your behalf, because you didn’t realize they’d lost it due to a DUI, medical limitation, or other problem.

Liability. If someone is on the road in the name of your business, and doesn’t have the right licensure for the vehicle you’ve put them behind the wheel of, you’re on the hook for any mistakes which arise due to their lack of knowledge. And even if they’re completely competent behind the wheel, and an accident or incident occurs due to someone else’s mistake, you’re still going to be liable for the problem, because they never should have been on the road to begin with. This is a very serious issue for any business, and it is therefore vital that you maintain a thorough driver license review process to protect yourself. It’s too late if you find out a driver lacked proper licensure after something goes wrong—you’re already on the hook.

Insurance. Mistakes in your driver license review procedure aren’t a one-off expense to be absorbed—this sort of mistake can impact your business for years, in the form of increased insurance premiums. Businesses who aren’t careful about their liability are bigger risks for insurance companies, and they’ll raise their prices accordingly. Conversely, a thorough and consistent driver license review process, paired with other liability-ameliorating strategies—such as utilizing vehicle reimbursement programs instead of maintaining a fleet—can add up to major savings on your insurance, as your company becomes a much safer customer to insure.

Have further questions about the driver license review process, alternative strategies for lowering liability and improving profits, and otherwise optimizing your business’s transportation methodologies and expenses? Check out the CarData Learning Center, or contact one of our experts for a consultation—you’re certain to benefit from the experience; many businesses see savings of as much as 30% on their transportation expenses by working with our reimbursement strategies and other tested cost-saving measures.