Since even relatively minor vehicle accidents can result in significant financial losses, insurance and legal experts always recommend companies have driving policies in place to protect businesses and their employees. If a company owns and operates vehicles or requires employees to use their own vehicles for work-related duties, having a vehicle use policy in place is always essential.
A carefully crafted vehicle use policy protects companies from potential liabilities. By outlining who can drive vehicles and what those vehicles can be used for reduces potential risks for companies and their employees. For example, it’s generally required that company vehicles only be driven when required to complete job-related duties. In other words, dropping the kids off at school or running errands after work is often forbidden. The guidelines must be clear and provide penalties for violating those guidelines. The company vehicle use policies must always be clear, and the guidelines should be reviewed frequently if the company’s needs change.
Reduce Operating Costs
Regulating who can drive company vehicles and when those vehicles can be driven tends to reduce operating costs. In some cases, mandating the use of specific routes can cut the total mileage driven or restrict drivers to safer routes. When drivers are on the road for the entire day, it also pays to restrict side trips for lunch or running non-business errands. Minimizing the total mileage driven also reduces the need for routine maintenance such as oil changes and tire rotating. Discuss the rationale for the policy guidelines and explain why they’re important to the company.
Review Driving Records Often
Insurance carriers generally decline to cover drivers who have serious offenses on their records. Even if a driver’s record is clean when they’re hired, it’s important to obtain and review employee driving histories at regular intervals to ensure no offenses have occurred since the last records were obtained. Unsafe driving by all employees is an issue all business owners face, so being proactive in detecting poor driving by employees is always important.
If you unsure what’s your company policy for vehicles and how to improve any manual, it’s a good idea to ask insurance and legal experts for advice. If a company does not have a driving policy in effect, now is the time to correct that issue.