How To Prevent Fleet Fraud In Your Small Business
As a small business owner with a motor fleet, the thought of a staged accident or injury claim by an employee can be costly. These falsified claims cost billions of pounds per year and the expensive pay-outs mean increased insurance premiums year on year.
It’s important you know what to look for to prevent and detect employee fraud within your organisation. This includes being aware of:
- Drivers with a history of accidents in similar circumstances.
- Drivers with a history of multiple claims with the same solicitor.
- Drivers that demonstrate familiarity with the claims process.
- An overly enthusiastic witness present at the accident scene who may be in on the fraudulent activity.
Fleet programmes should include a fleet safety policy that documents how drivers should behave to help prevent fraud. They should cover:
- Management obligation – managers should be alert in preventing and detecting fraudulent activity and claims.
- Policies and procedures – permitted and prohibited driver behaviour should be documented, as well as the correct procedures to follow in the event of an accident.
- Driver agreements – documenting driver agreements to conform to the policies and procedures can help prevent fraudulent activity.
- Driving record checks – driving records should be checked to ensure drivers are legally able to drive.
- Crash reporting and investigation – thorough investigations should be carried out, and employees should be asked to complete forms documenting any incidents.
- Vehicles selection, maintenance and inspection – regular vehicle inspections should be carried out to help prevent fleet fraud.
- Disciplinary action system – repercussions of fleet fraud should be made clear to employees, including legal actions and employment termination.
- Reward and incentive programme – managers should reward employees for good driving habits including lack of incidents and claims.
If your business operates using fleet vehicles, following the tips above can help in detecting and preventing fleet fraud. Demonstrating your fleet programme to your insurer may also help in reducing your motor fleet insurance premium. While most insurers will only cover fleets of five vehicles or more, Insync can provide you a free fleet insurance quote for fleets of three vehicles or more. For more information on fleet insurance, contact Insync Insurance today.