Driving whilst on company-related business policy

From time to time, employees who don’t have company cars may use their own vehicles on company-related business, such as attending client meetings or site visits. Our driving whilst on company-related business policy sets out the provisions you need to include.

Not your concern?

You may think that if an employee uses their own car when driving on work business, there is nothing for you to be worried about. However, it is important because if they have an accident whilst driving on work business, an injured third party might look to you for compensation on the basis that their injuries (and car damage) were sustained as a result of the employee’s negligence whilst they were acting in the course of their employment and hence you are vicariously liable. Alternatively, the injured employee could assert it’s your negligence that caused their accident because you didn’t check their vehicle was roadworthy before letting them drive it on business! None of this should be a problem if the employee has a fully comprehensive insurance policy in place to cover such claims, but of course if they haven’t specifically covered themselves for business mileage, or if they don’t have valid road tax cover or an MOT certificate (or even driving licence!), the insurance policy may be void.

What’s included?

Our Driving Whilst on Company-related Business Policy is intended to be protective of your position in this scenario. It provides that the employee must have a current, full driving licence and must notify you if they lose their licence for any reason, that their car insurance policy must cover business mileage (and you can ask to see a copy of the insurance certificate) and that the car has a valid MOT certificate, if required, and road tax cover. The policy also places the onus on the employee to ensure their car is in a roadworthy condition and that they carry out regular checks of tyres, oil, water coolant, etc. and that it has been properly serviced.

Finally, the policy includes other provisions covering the payment of mileage allowance, notifying accidents which occur whilst driving on work business, the carrying of passengers, the payment of fines and penalties, keeping the car clean and presentable when using it on work business and general rules on safe and legal standards of driving.