Delaware Business Insurance Update From CNC Insurance Assoc. "Problems Arise With Employee Personal Use of Company Vehicles" 12-28-16

Many business owners allow some personal use of company vehicles by employees. Mostly this is for minor business type activities after hours, emergencies, or general accommodations. However in the age of big data, business owners are getting a wake up call.  A quick review of an employee motor vehicle record (MVR), an employer can assess if  fines, accidents, or other violations were after hours in a company vehicle. What is being revealed is that employees are driving a lot more with business autos, than was even expected. One example, is when a DUI shows up on an employee MVR. Employers find out their employee stopped on their way home to a local bar or restaurant and registered a DUI in a company truck.. The bad part about this is the business owner now has a driver that can no longer drive for work and also the business was exposed to high risk due to the driver's irresponsibility. There are many other examples of the risk a business has when employees use company autos after work. Just remember as an owner you really need to have a concrete policy on after  business hours use and make sure every employee understands and signs off on it. Minimize the risk by establishing guidelines and then track by doing quarterly MVR reviews. GPS tracking devices are another tool,  if you can afford them. Having an awareness of the risks, a business owner can manage the pitfalls when employees take vehicles home. Until next time be careful out there and know your risks.


G. Kevin Nemith, President CNC Insurance Assoc. & The Small Business Insurance Center
Serving DE, MD, PA, VA, & NJ
www.cncinsurance.com
www.bizinsurancetv.org


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