For an incentive to secure existing employees and bring in new ones, many companies may offer car usage as a reward that is independent of a salary or part of a benefits package. This is often used as a means to show employee status in a business, or simply to benefit employees who travel or drive often to tend to business matters. However, it’s only natural for these vehicles to get some wear and tear on them as they make their journeys, and depending on what happens on the road, it’s possible that they could end up with some more serious damage.
In addition to protecting your company fleet (and employees) with a Commercial Auto Insurance program, consider the following measures to improve the longevity of your company vehicles.
Have firm policies and procedures in place. Are employees allowed to let anyone else drive or ride in the vehicle? Be clear on who is authorized and who isn’t. What is your policy regarding emergency situations or if a mechanic needs to test drive a car when making repairs? Plan for a variety of circumstances. Employees must follow company guidelines on using the company car outside of business hours as well.
It is in your best interest to require an employee to log all the trips they make in the company car, especially if it should only be used for business purposes. Vehicle log maintenance should record:
- Driver’s name
- Number of passengers
- Beginning location
- Starting and ending odometer readings
Also, consider requiring the recording of instances when the car needs gas or an oil change, as all care and maintenance of equipment must be a priority.
Enforce a clean and maintained driving record in order to use a company car. It is an employee’s responsibility to obey traffic laws whenever they’re behind the wheel. Violations that may terminate an employee’s driving privileges can include speeding tickets, street racing, reckless driving and driving under the influence of drugs or alcohol. The company typically the insurance premium of a company car. It’s best for an employee to learn the company procedures in the event of an auto collision.
Care and Maintenance of Equipment
Assigning each employee a specific vehicle and provide a manual clearly citing policies and procedures of operation.
The interior cleanliness of company vehicles is a common issue. Not only does this destroy the company’s image, but it also depreciates the value of the vehicle for resale or return if leased. Employees should be educated on the necessity of a well-maintained vehicle.
Create a pre and post-trip schedule for care and maintenance of equipment to be followed every time a vehicle goes out. Tasks can include both cleaning and mechanical checks such as:
- Washing windows inside and out
- Sweeping out the vehicle
- Checking for tool placement and that all needed equipment is onboard
- Check fluid levels
- Check that windshield wipers and mirrors are in alignment and that lights are working properly.
About Daniels Insurance, Inc.
At Daniels Insurance, Inc., we have a unique understanding of the risks that people like you face on a regular basis. With the backing of our comprehensive coverages and our dedication to customer service and quick claims resolution, your business will be fully protected. For more information, contact us today at (855) 565-7616.