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Can you drive a company car for personal use?

Can you drive a company car for personal use?

Although it appears to be harmless, allowing company vehicles to be used for personal use opens up your business to a significant amount of legal risk. Your business could be on the hook financially and face damage to its reputation is certain actions occur, such as drinking and driving or a severe personal accident.

Can a company require employees to drive their own cars?

When employees will be driving their own cars for work, there are several actions you can take as an employer to mitigate risk. Any company that allows or requires employees to use their personal vehicles for business should either purchase hired and non-owned coverage or add it to an existing automobile policy.

What happens if you drive personal car on business?

Employees found out of compliance with the company policy should be subject to reassignment or termination. It is every employer’s responsibility to ensure its employees’ safety on the job, and those that use personal vehicles on business are no exception.

Do you have to worry about employees driving on company business?

Employers need to be aware that flexible benefits, car allowances and cash option schemes do not remove this employer liability, even though management may feel that they do not need to worry about cars employees are driving. If the employee is on company business then the liability remains.

Do you have to insure your employees cars?

Require employees to carry personal insurance on their vehicles (at a minimum, $500,000 in liability is recommended) Obtain proof of employees’ personal insurance coverage annually. Ask employees to sign MVR authorization forms (to avoid privacy law issues), allowing your company to pull their Motor Vehicle Records.

When employees will be driving their own cars for work, there are several actions you can take as an employer to mitigate risk. Any company that allows or requires employees to use their personal vehicles for business should either purchase hired and non-owned coverage or add it to an existing automobile policy.

When did an employee use her personal vehicle?

On the date of the incident, the employee used her personal vehicle to transport herself and co-employees to a company sponsored program. When the program was over, she returned to the office.

Require employees to carry personal insurance on their vehicles (at a minimum, $500,000 in liability is recommended) Obtain proof of employees’ personal insurance coverage annually. Ask employees to sign MVR authorization forms (to avoid privacy law issues), allowing your company to pull their Motor Vehicle Records.

Employees found out of compliance with the company policy should be subject to reassignment or termination. It is every employer’s responsibility to ensure its employees’ safety on the job, and those that use personal vehicles on business are no exception.