Allowing workers to periodically use company vehicles for their own personal use can promote good worker morale and help to maintain a positive work environment. However, this practice, if not properly managed, can be very costly.
The insurance industry has observed an increasing number of vehicle accidents occurring when the units were used for personal reasons such as transporting household material and pulling trailers. Circumstances involving these accidents include intoxicated drivers, reckless driving patterns, and vehicle misuse. The purpose of this guide is to provide some tips to help you decide if you should permit personal use of your company vehicles and to offer suggestions to help you better manage the use of company vehicles for personal reasons.
Should I allow workers to use my equipment during non-working hours?
There is no easy answer to this question. Each manager or business owner needs to make a decision based on his or her own operations, workers, and vehicles. From a management perspective, personal use of company vehicles increases the potential for an accident based on the following proven assumptions:
- The more a vehicle is used, the greater potential there is for an accident.
- It is more difficult to manage and monitor personal use than business use.
In making a decision to allow personal use of company vehicles, consider these points:
1. Can you afford the loss of work or customers resulting from damaged vehicles, equipment or injured workers?
2. Can you afford the overtime that may be needed to make up a loss in work resulting from a vehicle accident?
3. Will your business suffer from adverse images to your customers or potential customers when you show up on the job with damaged vehicles or equipment?
4. Are you willing to incur higher insurance premiums and surcharges resulting from vehicle accidents during personal use?
How can I best manage personal use of company vehicles?
If, after considering the above items, you decide to allow workers to use your vehicles for personal reasons, it is recommended that you establish rules regarding the use of your vehicles. The following list can be used to help you define your own operating rules:
- Restrict personal use to designated workers that you trust and that demonstrate good driving habits. Verify that workers have valid driver's license. Contact your insurance agent to check the driving record of any questionable workers.
- Require that the only driver will be your employee. Prohibit the worker's family or friends from operating the vehicle.
- Prohibit the operation of company vehicles by workers who are intoxicated or under the influence of drugs or any other substance that impairs driving performance. Vehicle accidents involving alcohol or drug impaired drivers should not be tolerated and the employment of these workers should be immediately terminated.
- Establish rules regarding permitted usage of the vehicles. For example, your rules should address
- Towing
- Abusing or overloading vehicles
- Transporting of prohibited substances or hazardous materials
- Giving rides to hitchhikers
- Providing transportation to others especially children and infants
- Travel out of state should be prohibited
- Require a signed statement that the worker understands the company polices and agrees to follow them. Include a statement that failure to abide by your polices may result in disciplinary action, up to and including termination of employment. Retain this statement on file.
- Require that vehicles be returned in the same condition (appearance and fuel) when loaned to workers.
- Make sure workers know what to do in the event of an accident. Accident reporting kits should be provided in each vehicle glove compartment.
- Periodically inspect all vehicles and investigate the cause of any unreported damage.
Managing and controlling the safe use of your vehicles is your responsibility. Accidents are costly. It is important to take positive accident prevention efforts to prevent accidents arising from all aspects of your vehicle operations.
