A business disruption can happen at any moment. Perhaps your company is affected by a natural disaster, such as a tornado, wildfire, hurricane, or other devastating calamity, which impacts your ability to operate normally. Or, maybe your business is faced with a national emergency, such the coronavirus pandemic, and has no choice but to temporarily close its doors.

Having a plan for business continuity and disaster recovery can help passenger transportation companies minimize the negative consequences of a business disruption and quickly and smoothly reestablish full function to the organization. Here are four areas that operators should consider before returning to the road after a business disruption:

Getting Back to Business

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  • Review applicable federal, state and local laws and orders to determine if and how they may impact your company’s reopening process.
    • If necessary, take federal, state and local health department guidelines into account to determine how they may affect your specific operations, and create a plan to protect employees, passengers, and facility visitors.
  • Evaluate your operation and existing business strategies. Natural disasters and emergencies can impact tourism and the economy in a variety of ways. Therefore, your current business and marketing plans may not be quite as viable as they were before the shutdown. Look at other revenue stream opportunities, different market segments and new marketing, pricing and sales strategies to help attract customers.
    • Examine whether any operational changes, even subtle ones, will require revisions to your employee base and training.
  • Assess the effectiveness of your emergency operations and communication plans in response to the current situation. Incorporate what you have learned into your plans so your company is better prepared for any future event. Ready.gov’s Business Continuity Planning and Lancer’s The First 24: How to Develop, Implement and Test a Serious Incident Response Plan video package are valuable reference tools.
  • Review your company contracts. Before any business activity resumes, consult with your company’s legal professionals to determine whether any changes need to be made to your company contracts to operate in the post-business disruption environment. Take any operational changes into consideration when revising any contracts.
  • Contact your suppliers. Reach out to current vendors and let them know what, if anything, might need to change about your working relationship. Also, keep in mind that suppliers that you normally use may be affected by the disaster or emergency as well, so be sure to identify alternative vendors. In addition, plan ahead for how your company’s needs may increase as business picks up.
  • Acknowledge that normalcy is not going to happen overnight, and expect some challenges along the way. Despite how well you have prepared for reopening, you will likely face some difficulties. So, keep learning and evolving as new information becomes available, and be ready to make swift decisions and adjustments to overcome any obstacles.

Employees

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MANAGING PERSONNEL

  • Determine whether all personnel – management, administrative, sales, dispatch, mechanics, and drivers – are returning to their previous positions. Depending upon the type and length of business disruption, you may have laid off, furloughed or terminated some or all of your workforce. Your company’s business strategies post shutdown will help determine your employee needs.
    • o Be smart when it comes to hiring. As you begin to recall employees, you may learn that some do not plan to return to your company. Take your time in determining the best solution. Importantly, maintain strong hiring standards and requirements to ensure you have knowledgeable and qualified individuals working in your organization.
  • Decide whether you are reopening in stages or staggered schedules. As you begin to make plans to reopen your business, you may be able to return all employees to their positions immediately or you may have to assume a phased-in or staggered employee return process. If applicable, consider state and local directives for further guidance.
    • If you decide to reopen with a phased-in workforce return, have a plan for employees that return in the initial stages as some may have to assume additional responsibilities. Ensure that these individuals are knowledgeable in the areas that they will be handling and have a support system to assist them as needed.
  • Update any job descriptions that need to be revised. Staffing and business changes, along with possible federal, state and local health department guidelines may make modifications of job duties necessary. If so, it’s important to create a plan for each position, list the employee’s responsibilities and provide any required training and cross-training to help ensure a successful reopening.
  • Be honest and transparent, and stay in touch with your employees. Communicate via email, phone calls and/or virtual meetings on a regular basis to keep employees apprised of the status of your operation and their individual position.
  • Develop and implement appropriate protocols, in accordance with federal, state and local regulations and guidance, as well as industry best practices, to help ensure working conditions are safe. The Occupational Safety and Health Administration (OSHA) offers some useful Help for Employers.
  • Communicate any new work protocols and updates to all affected employees prior to reopening. Importantly, make sure that these policies and practices are consistent with existing state and federal workplace laws.
  • Check in with your employees frequently once you do open. The first few weeks after reopening will likely be a big adjustment for everyone. Keep in touch with your staff to see what’s working and what’s not, be receptive to employee concerns and suggestions, and make adjustments accordingly.

DRIVER COMPLIANCE, TRAINING AND MORE

  • Revisit your company’s Crisis Management Plan. Determine whether any changes have occurred regarding duties and/or telephone communication due to reassignment or replacement of staff members, and update your plan accordingly. Be sure to communicate those changes to your drivers and all employees involved.
  • Assume any driver is almost like a new driver. Make sure that driver records (e.g., licenses, medical certifications, Pre-Employment Screening Program [PSP], FMCSA’s Drug and Alcohol Clearinghouse) are as up to date as possible, and perform background checks. If drivers haven’t driven for any extended period of time, you’ve got to fill in that gap—from a compliance point of view, from a business management point of view, and from an employee management point of view.
  • Ensure that any required drug and alcohol testing is up to date before allowing drivers to operate a commercial motor vehicle. Consult §382.301 Pre-Employment Drug Testing and the Drug & Alcohol Clearinghouse for further guidance.
  • Interview all returning drivers to ascertain whether they drove for any other company(ies) during your business closure (multi-employed). If so, be sure to obtain their previous seven (7) days hours of service information before scheduling any trips.
  • Check MVRS and DAC reports for rehired drivers. Update all Driver Qualification Files accordingly. Refer to 49 CFR §391 Subpart F for more information.
  • Provide refresher driver training. Drivers that have been sitting idle may benefit from some training refreshers. Administer a road test to drivers to check for acuity, decision-making and agility, and test each driver on electronic logging device (ELD), camera, and telematic hardware and software usage. Check out Lancer’s Safety Stop Blog and policyholder-exclusive secure loss control website for valuable safety information, how-tos and reminders.
  • Develop and implement appropriate protocols, in accordance with federal, state and local regulations and guidance, as well as industry best practices, to help keep drivers safe and healthy while on the road. Be sure that your drivers understand their responsibilities in regards to any health or cleaning protocols, personal protective equipment (PPE), and handling difficult passengers.
  • Review all procedures for routing, road construction, venue parking, dropoff/pickup, and loading, and communicate any changes to all drivers. This is especially important if your business has taken on new business, routes or customers.
  • LANCER POLICYHOLDERS: Remind drivers to Report All Accidents to Lancer Insurance Company immediately.

Vehicles

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VEHICLE MAINTENANCE

  • Perform a detailed inspection of your vehicles, particularly if your units have been sitting idle for an extended period. Refer to the owner’s manual for the vehicle manufacturer’s recommended guidelines or contact the manufacturer for an inspection and preventive maintenance schedule, which includes recommended intervals and vehicle components that should be checked.
  • Review your tire and tire maintenance program. Tires that sit too long in a variety of weather conditions may begin to degrade. The age of the tire may contribute to this deterioration, although newer tires may also develop issues and problems from lack of use or rotation.
  • Determine whether any services were missed/are due for each vehicle. Also, check for wheel seal leaks and other components such as bearings, and whether the equipment received a brake inspection.
  • Review and update all maintenance files, consulting 49 CFR §396.3 for details. While this may sound like “paperwork,” you are ensuring regulatory compliance and actually preparing for your next Department of Transportation, state or local audit.
  • Conduct a parts inventory, reorder, and update company records accordingly. You may have sold, retired, added or exchanged vehicles during your business disruption. Besides, reviewing your inventory and selling what you no longer need will add efficiency in the garage or perhaps raise some revenue.
  • Confirm all state, federal, and local inspections, as well as all registrations and permits are up to date. This is especially important should you have a claim. Cutting corners in this area is a serious issue that may have a big financial impact on your business. See 49 CFR §396.17 for information about periodic inspections.
  • Check that all permits (e.g., International Fuel Tax Agreement) and registrations are valid on all vehicles.
  • Verify that all electronic logging devices (ELDs), telematics, and cameras are working properly and software is up to date. If you suspended or cancelled your vendor contract during your business disruption, this is the time to renew it, review it and update all hardware and software. Confirm that ELD instructions are onboard each vehicle. Also ensure that every vehicle is equipped with a graph-grid paper log as a backup in the event of an ELD malfunction.
  • Contact manufacturers, dealerships and service vendors to determine whether your vehicles have any outstanding recalls. Review vendor websites for suggestions on how to get your vehicles back on the road. Have your maintenance staff participate in all virtual and training sessions offered. Importantly, when completing repairs, use manufacturer recommended replacement parts.
  • Test drive your vehicles, especially if they have been idle for some time. Doing so can help identify potential problems.
  • Make certain all vehicles are properly covered on your insurance policy. Contact your insurance broker and confirm that you have the necessary coverage for every vehicle before you put it back on the road. Also, be sure all current policy period insurance and necessary paperwork is available on each and every vehicle.
  • LANCER POLICYHOLDERS: Ensure all your vehicles are equipped with a Lancer Accident Kit, and that each kit is complete. Accident Kits may be ordered by logging in for Policyholder Exclusive Materials.

Customer Interaction

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TRIPS

  • Stay in frequent contact with state and local officials who, in the case of natural disasters or national emergencies, will likely be issuing updated guidance for your community. If applicable, check state and local health department websites for advisories and guidelines.
  • Research places where you may be traveling since the safety and well-being of your passengers is imperative. Visit state and local health department websites for advisories, guidelines and potential destination restrictions. Visit the FMCSA website for information about emergency declarations.

GROUPS

  • Decide what procedures you may need to implement to help ensure the health and safety of passengers and employees.
    • Consider state and local health department directives to determine how they may affect your business operations.
    • Review your company’s "Welcome Aboard" message and, if necessary, update it to include information on any necessary procedural changes and your company’s efforts to provide the best ride possible for customers.
  • Monitor incoming phone calls and emails, and maintain communications with customers. Keep customers apprised of the status of your operation. Communicate via email, mail and social media on a regular basis, so your business is in your customers’ minds when you reopen and they need a passenger transportation service like yours.

While we can’t possibly cover every issue that you may face when reopening after a business disruption, we hope that this material provides some useful tips and insight as your operation returns to the road.

Lancer policyholders are also invited to contact our SafetyLink Hotline, our complimentary service to help you get answers or additional information on safety and regulatory issues.

This material is for informational purposes only, and is not intended to serve as legal, financial or tax advice. Please consult your company’s legal, tax and accounting professionals before taking any action.