Company Car Policies: Liability, Insurance, and Substance Use

Many businesses commonly use a company care to make their employees’ lives simpler. These programs, however, can also cause issues for business owners. Providing employees with company cars is a double-edged sword. Employees may abuse the perks by using the cars for personal errands and everyday use.

Some companies enact strict policies in order to cut costs from company car usage. However, even the strictest policies aren’t able to address all the potential risk factors. It is essential to create a complete company car policy if you plan on giving your employees this benefit.

Make sure you understand all the basics of a company car program and that all of your bases are covered in that program.

Company Car Liability

Liability is an extremely important issue if your business has a company car program. Understand that your company may be held liable for harm caused by employees. In many cases, the employer is responsible for any harm done while the employee is driving the company car. Please note that 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 ins and outs of your plan. However, you must be aware that the perk of a company car program also brings risks.

Company Cars and Substance Use

It is possible for an accident to happen at any time. If your employees are using drugs or alcohol, accident risks rise even higher. As the employer, you should be aware of the risk factors that may harm your employees, your company, or third-party individuals. It is your responsibility to reduce these risk factors if you provide a company car. Initiating a drug and alcohol policy is an active step toward keeping alcohol and drugs out of your workplace and out of your company cars. The most efficient policy will include drug and alcohol testing for all employees that enjoy the perk of driving a company car.

Company Car Insurance

You will need a consistent insurance policy if your employees drive company vehicles. Every automobile that is titled under the company’s name must have full coverage. Make sure that your commercial vehicle insurance policy is able to protect your company from expensive lawsuits.

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