There is no doubt commercial auto insurance can be tricky, especially as it relates to personal use. Do you allow your employees to use a company vehicle for personal use? If so, keep reading. If your employee injures a third party while driving a company vehicle for any reason, in most cases and in most states, your company will be on the hook, even if you did not give permission to use the vehicle.
Here are a few examples of what can happen:
An employee uses the company vehicle to transport their child’s soccer team to a game.
- An employee’s teenager takes your vehicle for a joy ride.
- Your employee allows the neighbor to use your company vehicle.
We agree there may be good reasons to allow key employees to use company vehicles for personal use. However, we propose you consider these risk management techniques to help reduce your risk.
Consider the following:
Obtain proof of, and review, the motor vehicle records of the employee and all household drivers.
- Complete proper training of the use of the company vehicle.
- Complete vehicle safety inspections.
- Complete drug and alcohol testing of all employees – including management.
- Create driving standards and stick to them.
- Do post-accident reviews.
- Have annual MVR checks.
- Prohibit cell phone usage while driving.
- Only allow your employee and his/her household to drive the vehicle.
- Require the employee never keep company property inside the vehicle, even if locked.
Did you know that many commercial insurance companies give discounts for combining your property, auto, liability, and even excess insurance into one program?
MovieInsure.com offers a wide variety of A-rated, admitted and Non-Admitted insurance companies for our clients to choose from. We only deal with companies that are on the Insurance Commissioner’s approved list.
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