Protecting Company Vehicles

By Anne Valentino  | 
11/3/17 11:13 AM


One of the biggest investments that you may have when it comes to your business are the vehicles associated with the company. From company cars to other types of work-based vehicles, ensuring that you take the steps necessary to protect them will potentially save you a great deal of time and money in the long run. You want to make sure you have the right kind of insurance coverage, and enough insurance.  You also want to ensure that employees understand the rules and regulations associated with usage of company vehicles. Remember, it’s your job to look out for your business’s assets.

Car Insurance and Company Vehicles

Beyond getting commercial vehicle insurance, you also want to check that the liability coverage is sufficient. If your employee gets into an accident while driving a company car and causes injury to someone, then the insurance company of the injured party can sue your business. As a commercial endeavour, you have more risk, more exposure and are thus more vulnerable. You need adequate car insurance coverage to protect your business. Reviewing both your commercial auto insurance and your business liability insurance with your broker will ensure you have the coverage under both policies that you need to protect your business. For example, non-owned coverage is covered under the commercial general liability policy as well as a commercial vehicle policy - and you should have it on both and with the same insurance company to help eliminate any gaps in your coverage.

Enforce the Rules

These vehicles cost a great deal to buy and to repair or replace. Going over stringent rules with your employees when it comes to vehicle use and driving policy is an absolute must if you want to maintain your assets in the best and most cost-efficient way. Often such rules and regulations will contain the following:

  • Absolutely no texting or hands-on cell phone use. Not only is it dangerous, it’s against the law. Hands-free and Bluetooth devices are perfectly sufficient until the employee is freed from driving in order to further communicate.
  • Always wear seat belts. Again, this goes toward safety. You, of course, want to make sure that your staff are responsible and secure while in a company vehicle.
  • No driving under the influence. This is just reckless and extremely irresponsible. Not to mention, when driving while under the influence, the driver becomes a danger to others on the road and your company can be held liable.
  • Limited usage of the car. This is a work vehicle and should only be used for work purposes. Once you get into a situation where employees are using the car extensively for things other than work, you increase exposure and thus your liability.

Know Your Employees

This may seem like a no-brainer, but truly knowing your employees, what type of people they are, knowing something about their character, and looking into their past driving record can help ensure that you make the right decisions regarding usage of a company vehicle. When hiring employees for jobs that may involve driving, ask for their driving history. You can even request a driver’s abstract for proof.

You may even want to provide a training course for those who will be driving company vehicles extensively, or require employees with limited driving experience or accidents on their record to take one on their own time. Bonus - it can save them money on their personal insurance!

It’s all about being smart and open with your employees regarding expectations when it comes to the business’s vehicles. Also, it’s a good idea to discuss with your broker any questions you may have about what types of insurance you want for company cars and their respective drivers.

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