What are the exposures in my Company for Non- Owned Vehicle Operators?

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What are the exposures in my Company for Non- Owned Vehicle Operators?

What are the exposures in my Company for Non- Owned Vehicle Operators?

When we are considering your exposures from your business vehicles, generally your fleet vehicles fall into 2 categories, either owned or non-owned.Owned refers to company purchased or leased vehicles such as cars, vans, and trucks.These vehicles are registered to the company.Non-owned refers to vehicles that are owned by employees and are usually cars or light trucks.Employees are usually compensated for using their own vehicles, note that non- owned can also refer to rental vehicles.

Example of non-owned vehicles use include:

  • Customer visits by sales personnel
  • Employees that fill in at another location
  • Employees running an errand on behalf of the company
  • Staff picking up food for a meeting
  • Overnight or day trips for seminars or training

Operating a vehicle is an important part of any business and can be a significant liability to your company.The exposure your company has can include auto liability, general liability, and workers compensation.

What are some non-owned vehicle exposures?

One needs to address the exposures in your companies written safety program that is consistent with the policies, requirements, procedures and training for those that are driving company vehicles.Making sure that the appropriate employees to operate your company’s vehicles, or their own vehicles for business use is a good first step. Consider the following steps to minimize your exposure:

  • Identify all drivers that operate vehicles and include them in your fleet safety program
  • Have a list of drivers, with license numbers, that management can access easily
  • Develop management policies and follow up procedures
  • Make sure you have a clear policy statement. that anyone operating a motor on company business, must be on the list of approved drivers and that all fleet policies apply to them.
  • Have a clear policy that any one operating a motor vehicle on company business must be on the list of approved drivers and that all fleet policies apply to them
  • Define what types of vehicles are acceptable to use
  • Require drivers to maintain acceptable driving records, per your company’s motor vehicle record criteria definitions.
  • Require vehicles to be in good repair
  • Require seatbelts and appropriate restraints at all time
  • Have a vehicle use agreement with signatures
  • Require all drivers inform their personal insurance carrier that there is business use
  • Require that drivers provide a proof of minimum liability insurance in line with corporate risk management philosophy
  • Drivers must inform management for changes in insurance, including loss of insurance.

Common Minimum Insurance Limits for Personal Vehicles

Most vehicle reimbursement schedules use the IRS mileage reimbursement rate. This rate is based on the average cost of owning and operating a car.One of these costs is insurance.At jan jesberger insurance we would love to have a conversation to provide information on acceptable minimum limits for your non- owned exposures.

At jan jesberger insurance, Laura and Toni, our commercial agents would love to sit down with you and have a meaningful conversation about your exposures with non- owned vehicles.Give us a call today at 208-762-2122