Whether your business has company vehicles, or employees use their personal vehicles for company business, you need to have a documented vehicle policy and procedures guide for your company.
TIP: If your business owns vehicles titled in the company’s name, you will need commercial vehicles insurance. If you have employees who use their vehicles for business use, be certain they have sufficient liability coverage with their personal auto policies. Business owners may also want to consider a commercial vehicle insurance policy with an added non-owned auto liability endorsement to help protect the company’s assets from an expensive lawsuit if an employee is involved in an accident while conducting company business.
Basics Of Company Vehicle Policy
The company vehicle manual should be a clearly written policy that explains driver liability and responsibility when using a company vehicle or the employee’s vehicle to conduct company business. Here are the most important points that should be included in any company car policies and procedures manual.
Company Owned Vehicles
- Company Policy Statement – Describes the purpose of the company vehicle.
- Driver Eligibility – Document driver’s license requirements. Include any requirements specified by your company’s business insurance and commercial vehicle insurance. Employees should also complete a Motor Vehicle Record (MVR) authorization release form.
- Maintenance – Detail the vehicle maintenance responsibilities of the driver and those of your company. Identify required maintenance schedule.
- Usage Guidelines – Describe how, when and where company vehicles should be used. Include who can and cannot operate a company vehicle, and other vehicle use restrictions such as passengers, tobacco use and personal use.
- Fuel Policy – Explain fuel reimbursement if applicable.
- Mobiles Phone Usage – Explain the rules for using mobile phones on company business while driving. This policy is often dictated your state’s Department of Motor Vehicles (DMV).
- Accidents & Traffic Violations – State safety expectations such as seatbelt use, airbags, cell phone usage, distracted driving, driving while under the influence, and driver fatigue. Include any disclaimers and liability statements. Explain what to do at the scene of an accident, and how to fill out an accident report. Include procedures for submitting accident reports, repair estimates, and obtaining repairs. Explain procedures for reporting traffic tickets, the employee’s responsibilities for parking or motor vehicle code violations, and disclaimers concerning the company’s responsibility.
- Theft/Vandalism – Describe what happens if a driver’s personal possessions or a company items such as a laptop are stolen, or if a vehicle is broken into. List procedures that must be taken to make a claim.
- Driver Acceptance/Waiver Form – Signature form each employee must sign stating that they have read and accept all of the conditions of the company vehicle policy.
Employees Owned Vehicles
If you your employees use their car for business purposes such as making sales calls, making deliveries, or picking up supplies, you will want to address requirements by your business or commercial vehicle insurance policies. You will also want to discuss company policy on reimbursement. As a rule, each person who drives a vehicle in connection with your business should keep written mileage records that show the length and purpose of their business trips.
TIP: For 2014, the standard mileage reimbursement rate for business miles was 56 cents per mile.
At Virginia Beach insurance company WBR Insurance we offer a full portfolio of policies, including business insurance. We pride ourselves in establishing personal relationships with our customers to assist you in protecting what matters most. To get a free quote for your Virginia Beach business insurance needs, give us a call at 757-340-0028 or visit our website www.WBRInsurance.com.
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