Company Car Policies: Liability, Insurance and Substance Use

The company car is common for many businesses. A company car program can make employees’ lives a little simpler. The same program can also cause issues for business owners.

Providing employees with company cars is a two-edged sword. Employees may take advantage of the perk by using the cars for personal errands and everyday use.

Some companies have strict policies in place to cut costs from company car usage. Even the strictest policies can’t address all the potential risk factors. So, be sure to create a full company car policy if you plan on giving your employees this benefit.

Here are the basics of a company car policy. Make sure that all of your bases are covered in your company car program.

Company Car Liability

If your organization has a company car policy, liability is an extremely important issue. You know that your company might be held liable for harm caused by employees. In many cases, the employer is liable for any harm done while the employee is using the company car. The employee’s personal auto insurance policy may be the primary insurance available if the damage is done outside of company time.

Your insurance agent and lawyers can explain the intricacies of your plan. However, you must be aware that the perk of a company car program also brings risks.

Company Cars and Substance Use

Accidents can happen at any time. if your employees are using drugs or alcohol, the risk of an accident is even higher. As the employer, you must be aware of potential risk factors that could cause harm to your employees, company or others. It is your responsibility to reduce the risk factors. Initiating a drug and alcohol policy is one active step toward keeping alcohol and drugs out of the workplace. An efficient policy will include drug and alcohol testing for all employees that have the responsibility of driving a company car.

Company Car Insurance

business man company car

If your employees are using company vehicles, you must create one consistent policy. If all vehicles are titled under the company’s name, they need full coverage. You’ll need to make sure the commercial vehicle insurance policy is able to protect your company from expensive lawsuits.

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