by Jessica Dale

Importance of MVR Checks


In this ever changing environment, it is imperative businesses focus on risk management. One way a company can do this is by completing pre-hire screening of prospective employees. This includes running MVR checks, especially when driving is necessary for the job. It is recommended this happen prior to hiring any new employee and allowing them to operate a company-owned or leased vehicle, or prior to them using personally owned or leased vehicles on company business. This should be done annually for each driver, and after any incident.

This is very important because an individual will be excluded from coverage under the business auto policy if his/her MVR does not meet the eligibility guidelines of the insurance carrier. When an employee is excluded, he/she will not be able to drive any vehicle on behalf of the company, whether it is a company owned vehicle or personal vehicle. If an employee were to drive a vehicle while on company business while excluded, the company would not have any liability coverage for anything that arises out of an incident with that driver – a huge exposure for the company.

Following is a general list of guidelines insurance carriers use when considering excluding an employee:

  1. Any major violation in the last 5 years.  Major violations include:
    • Driving under the influence of alcohol/drugs or chemical test refusal; open container
    • Person under 21 in possession of drugs or alcohol
    • Vehicular manslaughter, homicide, or criminal negligence
    • Use of motor vehicle in committing of a felony
    • Reckless or negligent driving
    • Hit-and-run accident/leaving scene of accident
    • Failure to stop for law enforcement officer
    • Operating with a suspended or revoked license or as an uninsured driver
    • Making a false report
    • Resisting arrest
    • Speeds in excess of 20mph
    • Operating a motor vehicle without the owner’s consent [grand theft]
    • Racing [within last 3 years]
    • Failure to have vehicle under control [within last 3 years]
    • Passing a stopped school bus [within last 3 years]
    • More than one speed excess of 15mph [within last 3 years]
    • Child endangerment [within last 3 years]
  1. Generally more than 2 minor violations [depending on the company] within a 3 year time period:
    • Speeding 20 or less over the posted limit
    • Driving too fast for conditions
    • Unsafe lane changes
    • Failure to stop or yield
    • Improper turn
    • Failure to obey traffic signal or sign
    • Illegal passing
    • Following too closely
    • Nonmoving violations
      • Seatbelt restraint
      • Texting/phone use violations
      • Distracted driving
      • Operating without insurance
      • Driving a commercial vehicle without a CDL or without the proper class or endorsement
      • Equipment load, size and/or similar safety-related violations

You can obtain the MVR of an employee a number of ways: through the Michigan State website [other states may offer a similar service] – Michigan Link: http://www.michigan.gov/sos/0,4670,7-127-1631_51019_51026—,00.html , asking the employee or prospective employee to obtain from the secretary of state’s office and bring in, or other online resources such as Softech International – Softech Link: http://www.softechinternational.com/ . Generally the state and other websites charge a per MVR fee of approximately $7-$8, but well worth the money for protecting your company!

*A note to employees, especially those in fields that require driving [truckers, etc] – pay attention, slow down, and drive safe – your job could depend on it!

National healthcare open enrollment starts November 1st and ends on December 15th. To make an appointment with one of our trusted advisors please contact us at 906.228.7500.

Click Here For More Information