Do you ever drive your car for business use?

Is it adequately insured?

A recent survey by telmatics provider, Trimble revealed that 60% of their respondents didn’t know that they need to insure their car for business use if they ever use it on behalf of their company.

This is a massive concern as more companies rely on employees using thier own vehicles to carry out business trips.

While the cost of running a fleet of company vehicles continues to increase, more and more companies are keen to save money. Operating a “grey fleet” may seem like an attractive alternative to hefty bills but this can lead to severe consequences for the employer.

If there’s an accident, the company could face reputational damage and face a civil claim being made against them. At the very least, the company would probably have to deal with the costs of an absent employee.

It really isn’t worth the risk…but it seems that both employers and staff members are somewhat in the dark when it comes to understanding their insurance obligations.

So here are the basic rules:

  • Employers have a duty of care towards all employees if a vehicle is used for business purposes (whether it is owned by them or not).
  • Employers are expected to check that the employee has a valid driving license, their insurance covers them for business use and that any vehicle they use for business has a valid MOT.
  • A risk assessment may need to be completed.

If you haven’t done so already, make sure you get your business cover sorted – the cost of NOT doing could strip you of more than just cash.