How to Manage the Risks of Employer-Owned Vehicles for Small Businesses
As a small business owner, it’s important to understand the risks associated with employer-owned vehicles. Owning a fleet of vehicles can be a major asset for any business, but there are potential hazards which must be taken into account when making vehicles available to employees.
The most common risk is that of an accident occurring while the vehicle is being driven by an employee. Depending on the particulars of the situation and how well the company has prepared for such incidents, this could result in major liability issues. In some cases, legal recourse may be sought against the company due to an employee’s negligence or recklessness while behind the wheel.
Another risk associated with employer-owned vehicles is theft. Vehicles that are used by multiple drivers can be particularly susceptible to theft if proper security measures aren’t taken into account. This can leave businesses facing a large financial loss as well as potential insurance penalties or higher premiums depending on their policy coverage.
Employer-owned vehicle insurance should always be kept up-to-date and reviewed regularly. It’s also important to have a written driver policy that outlines acceptable uses of company vehicles as well as any safety procedures they must follow while driving. Employees should also be made aware of any restrictions placed on them regarding personal use of company vehicles and disciplinary action taken if those rules are violated.
It’s additionally important for businesses to consider road risk management policies when dealing with employee-driven vehicles. This includes steps like ensuring all vehicles have valid MOTs (Ministry of Transport) certificates, roadworthiness inspections and valid tax discs issued for each vehicle in the fleet. Additionally, companies should keep records of all trips made in company cars and require passengers to sign disclaimers before riding in such cars as necessary precautions against liabilities incurred from accidents during work hours or when travelling between locations for business purposes.
Overall, understanding and managing the risks associated with employer-owned vehicle use is essential for any small business looking to safeguard their finances and reputation in case of incidents or accidents involving those vehicles – both inside and outside of normal working hours – while protecting drivers from potential liabilities incurred during the course of their duties.