How to Determine Driver Liability on a Company Car
Just as a new job might mean more responsibility, so does driving a company car. Determining the driver's liability on a company car is largely an issue of each individual incident. Use the tips below to determine your liability while driving a company car.
Other People Are Reading
Instructions
-
-
1
Know that if you own or lease a company car, you and your business are instantly at risk. If you own a small business and are buying or leasing a company car, make sure that both you as an individual and your corporation as owner or lessee are both protected. It's easy for corporate car insurance to be handled incorrectly, so have the proper coverage.
-
2
Train employees in company policy so that the terms of use of the company car are clear. If employees are improperly trained on the terms of use of the company car, your risk is increased. But if it is clear what the policies are, you're much better off.
-
-
3
Allow only authorized people to drive your company car. Your agreement with each employee must specifically outline the rules for company cars. Most companies allow family members to drive the car, but not friends.
-
4
Notify your insurance company if you use your personal car for company business. Although it increases your premiums, it is never a good idea to mislead your insurer.
-
5
Understand your employer's policy on using the company car, if you're an employee. Don't settle for reassurances that you are covered. Get it in writing.
-
6
Increase your risk on driver liability if you have any independent contractors or employees who even occasionally run an errand for your business with your vehicle.
-
7
Protect your business assets with a commercial auto insurance policy if you provide your employees with a company car. Consider both a hired and non-owned policy if some employees use their own cars for business. The latter will help your employees rest easier when using their private vehicles.
-
1
Tips & Warnings
If you drive a company car, ask your personal auto insurance company about qualifying for a multi-car discount.
Remember that most commercial auto insurance policies do not cover an employee driving his personal vehicle while on company business.
