- About PS&F
- Industry Focus
- Client Tools
- Education & Events
March 18, 2014
The following are general guidelines to be considered when establishing a corporate auto policy. These comments are meant for use as a reference only. All policies should be reviewed by corporate counsel prior to implementation. Please discuss any questions or concerns regarding your particular policy with your, Parker, Smith & Feek Account Advisor.
Establish a Fleet Safety Policy
A fleet safety policy should be written and widely distributed throughout the organization. The policy should: Communicate management’s support and reflects the company’s vision, values, and mission and it should be simple and explicit.
Establishing Hiring Criteria and Screening Drivers
Check Motor Vehicle Records (MVRs) on all employees that drive company vehicles upon hiring and annually thereafter. For employees that drive their own vehicle for company business, checking their MVRs is at your discretion. However, if you have a driver routinely driving their car for your business and especially if you provide a car allowance or other stipend and you do not check their MVR you could be exposed to a lawsuit alleging ”Negligent Entrustment”. Review the MVR with the driver when needed. Verify the MVR meets the standards established.
The following overall corporate standards are recommended:
The following is a guideline in helping to determine status of drivers:
Any major violation is automatically ”poor”. The company should determine disciplinary action against existing employees that develop a ”Borderline” or ”Poor” MVR. ”Borderline” drivers should be monitored more frequently and ”Poor” drivers should have at a minimum their driving privileges revoked. Both Borderline and Poor drivers could improve their level by completing a certified driver training program e.g. Evergreen Safety Council’s ”EverSafe Driving Program”, Defensive Driving School (Seattle Area), Professional Truck Driver Institute (PTDI) course, etc..
The following are examples of Minor and Major Violations:
Speeding, U-Turn, etc., and any violation other than major including:
Personal Use Policy For Corporate Vehicles
No personal use of company vehicles is the best policy. The vehicle should be used for going to and from work and during work hours on company business.
No spouse or family member is authorized to use the vehicle. This is sometimes modified for executive level company vehicles where the spouse is allowed to drive, however, the spouse should be screened like any other driver. Insurance companies will resist children driving the vehicle.
You may leave yourself some discretion by requiring an employee to notify management if the employee might need to use the vehicle for various reasons. This can be hard to monitor and may expose the company to claims of not treating employees equally.
Non-Owned Vehicle Controls
This exposure exists when employees use their own vehicles for company business. All company rules and policies should apply equally to these drivers.
The driver should also:
In addition to following the rules and laws of the road, additional driver rules could include:
A driver’s license does not mean a person knows how to drive safely. It means they have passed minimum requirements established by the State.
Your Parker, Smith & Feek’s Account Advisor would be happy to discuss further training or to address specific problems if your safety committee agrees that this is a valuable service.
A disciplinary action may vary from a probationary period to loss of driving privileges to termination, depending on the individual’s driving and employment records. All such actions should be taken into consideration.
Written Maintenance Program
A written maintenance program should exist to ensure the fleet vehicles are properly maintained and in good working order. The procedures should meet the manufacturer’s specifications at a minimum. All inspections and maintenance should be documented.
Parker, Smith & Feek Risk Management Center
Please be sure to visit the opens in a new windowRisk Management Center (RMC) to access valuable information regarding sample fleet safety policies, driver training and much more. The RMC is available via within the DigitaLINK portal and is a resource provided at no cost to PS&F clients.
The views and opinions expressed within are those of the author(s) and do not necessarily reflect the official policy or position of Parker, Smith & Feek. While every effort has been taken in compiling this information to ensure that its contents are totally accurate, neither the publisher nor the author can accept liability for any inaccuracies or changed circumstances of any information herein or for the consequences of any reliance placed upon it.