Risk Management

This column uses fictitious case histories to introduce important loss-control principles. The details for these case histories are not meant to represent any particular occurrence. Any similarities to living people or actual events are purely coincidental.

As November arrived, Pete was glad to see winter was holding off. He knew cold weather eventually would descend on his area and affect his company, LMN Roofing. But for now, the weather was mild and dry and the company could install roof systems for a few customers before winter arrived.

Pete had good workers to complete the projects and believed some could make good foremen. One of these workers was Josh. Josh was eager to learn and had a great attitude and work ethic. Pete had high hopes for Josh as did Pete's son, Paul, LMN Roofing's senior foreman.

Paul had noticed Josh's positive attitude during the summer and placed Josh on his crew. Paul was impressed with Josh's performance and hoped to get him into the company apprenticeship program.

LMN Roofing was working on a project at a local manufacturing facility, and Paul was the project foreman. Before lunch one day, the crew realized it didn't have enough EPDM adhesive to finish work for the day. Paul asked Josh to take the company pickup truck to the yard and get a skid of adhesive. Josh bolted down the ladder and was gone in no time. Josh wanted to return quickly to the job site so Paul would be impressed.

As Josh drove the new pickup truck, he liked its performance and how much it handled like a car. Josh arrived at the company's yard, loaded the skid of adhesive and headed back to the job site.

Although the pickup truck handled like a car, it now was loaded with adhesive weighing almost 2,000 pounds (900 kg). The truck easily could handle the load, but the extra weight altered the truck's handling characteristics in ways with which Josh was unfamiliar.

Josh headed out of the yard toward the freeway. He was driving well above the speed limit but didn't notice how fast he was going. Josh only was thinking about returning quickly to impress Paul. As Josh came to a stop sign, he realized the pickup truck could not stop as easily as before. Josh hit the brakes hard, but it was too late. He slammed into the rear of a car stopped at the intersection. This car then hit the car in front of it and pushed it into oncoming traffic where the car was broadsided by a large truck.

The accident was over quickly. Josh was wearing his seat belt, and the airbag inflated; he had no injuries. Josh stumbled from the truck in a state of shock and knew he was fine but assumed the occupants of the broadsided car were not as lucky. Someone called 911, and soon the site was awash in sirens and flashing lights. Josh felt horrible; he couldn't believe he caused the accident.

Josh was taken to a hospital for observation. While there, he learned the occupants of the broadsided car, a mother and two children, died.

When Pete heard the news, he was glad Josh was OK but horrified about the fatalities. Pete knew there would be news coverage and an insurance claim.

Pete called his insurance agent and told him what happened. The agent asked Pete whether he provided any training or ordered a motor vehicle report (MVR) on Josh. Pete said because Josh was not a regular driver, he had not. The agent said all company drivers should be trained and their MVRs should be checked.

Pete checked Josh's MVR the following week and was surprised by what he learned. Josh had received four speeding tickets during the past five years and a conviction for reckless driving.

Pete never would have let Josh drive a company vehicle had he known this information. As a result, Pete instituted a training program for all company drivers and decided to obtain MVRs for all employees regardless of their job duties. Pete realized there was more to choosing good workers than being impressed by their attitudes and eagerness.

Traumatized by the accident he caused, Josh eventually left the company. He felt awful for involving the company in lawsuits and insurance claims.

Bill Steinmetz is NRCA's risk-management consultant.