When a company assigns vehicles to its employees, it needs to create a solid policy that protects the fleet and the company. The policy should define how the vehicle can be used and what requirements an employee must meet to qualify for a company car. It should also outline what will happen if the employee violates the policy.
The most important part of any policy-making exercise is understanding what you are trying to achieve. The best way to do this is to sit down with your insurance agent and have them walk you through the process. This will allow you to develop a comprehensive business auto insurance policy that works for you and your employees. You will be rewarded with peace of mind and the confidence your organization deserves.
A company vehicle policy establishes which employees are eligible for a company fleet and outlines the requirements for qualifying for a company car. Basic rules employees must follow when using company vehicles, and disciplinary action for misusing vehicles.
Employees with disabilities should not be excluded from using a company vehicle. This is especially true for those who drive a distance for their job, such as fleet drivers, sales managers, and business travelers.
The policy should also clarify whether the vehicle may be used for personal purposes, such as commuting between jobs or errands after work. If the vehicle is allowed for personal use, it should clearly outline how far employees can travel without a company permission slip.
Whether your company offers employees access to a company-provided vehicle or allows them to keep their car, it's essential to create a policy that outlines how, when, and where the vehicle can be used. This can include determining which employees are eligible for a company vehicle, defining basic rules about using the vehicle, and setting forth disciplinary actions that can be taken in case of misuse.
Creating a personal use policy for company vehicles can be difficult, but several resources and templates can make the process easier. You should also ensure that your policy includes a detailed record-keeping procedure that tracks business use versus personal use and related expenses, such as lease payments and mileage.
If you have employees who drive personal vehicles for business, creating a company vehicle policy is important. It can help ensure that employees adhere to company driving guidelines and procedures and keep managers accountable for driving behavior.
Typically, these policies include provisions about accident reporting and driver qualifications/criteria. They also hold employees responsible for reporting maintenance needs or damage that may affect the vehicle's safety.
In addition, many states require reporting accidents that result in injury or death and property damage of over $1,000. In those situations, the police and all drivers involved in the crash must be notified.
If you provide your employees with a company vehicle, you must ensure they have the right commercial insurance coverage. This includes hired and non-owned auto (HNOA) coverage.
Depending on your business needs, you may also need additional coverage to protect vehicles your employees use outside their work hours. One option is to add Drive Other Car Coverage (CA 99 10) or Individual Named Insured (CA 99 17) endorsements.
Providing company vehicles to employees can be an important way to help your employees get where they need to go, but it has its risks. Talk about your situation with an insurance professional to ensure you have the proper coverage. Moreover, creating a contract with all employees who use a company vehicle for personal reasons is a good idea.
