by Guest » Wed Feb 08, 2012 03:40 pm
I run a small food van company with six employees. All my drivers have chaufer’s license. A few days ago, one of my model employees was charged with a DUI. It was his first offense. He has no previous records and he was driving his own vehicle on his own time when he was charged. His BAC was .18. The court has sentenced him with a fine and mandatory AA attendance for 12 weeks. Somehow, my insurance company got wind of this chain of events and they called me up to say that my employee cannot be allowed to drive any of the insured vehicles (the food vans) and he can no longer be a driver in my employment. I think it’s an absolutely ridiculous demand on part of the insurance company, is it? The employee is on my payroll, not theirs. I decide if he can work for me or not.
Posted: Thu Feb 09, 2012 07:29 am Post Subject:
The employee is on my payroll, not theirs. I decide if he can work for me or not
You are 100% correct about this but not about what they told you. What they actually told you is that they would not renew your coverage if he was still employed as a driver.Just like they can't tell you how to run your business, you can't tell them how to run theirs.
They are accepting liability for a premium. They have every right to let you know they they no longer want to assume the risk if that person is driving. You can feel free to keep him employed and see insurance elsewhere.
Posted: Thu Feb 09, 2012 02:31 pm Post Subject:
Or you don't have to get rid of the employee at all. Just put him behind a desk or do something similar. Your insurance company will be happy, your employee will be happy and you'll be happy, win-win situation.
Posted: Fri Feb 10, 2012 06:31 am Post Subject:
Somehow, my insurance company got wind of this chain of events and they called me up to say that my employee cannot be allowed to drive any of the insured vehicles (the food vans) and he can no longer be a driver in my employment.
Well. as has been said, the insurance company cannot tell you who you can or cannot employ, but they certainly can tell you who they won't insure as a driver of one of your vehicles. It's not only lawful, it's a sound business practice.
As to how the insurance company "got wind" of this . . . they probably survey public records, like traffic court convictions. I would expect my insurance company to do this.
Don't get me wrong. Consumption of alcohol is not a criminal offense. But combining alcohol consumption and driving is. What would your reaction have been if your employee had been intoxicated and driving one of your food vans and (1) was arrested for DUI and your vehicle was impounded -- hundreds of your dollars to get it out of impound, not to mention all the expense of the spoiled food, or (2) your intoxicated employee killed someone while driving your van?
And let's say that someone was a 25 year old professional baseball player with a long, promising career ahead of him, currently earning a few million dollars per year. What do you think the jury would award the victim's family in a case like that? Don't think this one's a made up story . . . it happened right here in Southern California to a pitcher for the Los Angeles Angels of Anaheim about two years ago.
Think about it, and understand your insurance company is trying to do you a favor. Not only are they protecting their own business, they are protecting yours.
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