Fleet Management – do you know the pitfalls?
Fleet management is an area of business operations that many people become involved in without fully understanding the legal responsibilities and the pitfalls they are taking on. Even if your employees are simply undertaking company business in their own vehicles, you have a range of fleet management responsibilities that could make you and your business liable for any accidents that happen, especially if third parties are involved.
In this article we’ll cover the legal responsibilities which companies take on when it comes to fleet management and explain how you can manage the risks.
What constitutes a company car fleet?
A company has a legal responsibility for any vehicle that is used for business travel, regardless of whether the vehicle is owned by the company or not. You need to be sure that the vehicle is being driven by a fit and proper person, that it is a road-worthy condition and that the insurance policy covering the vehicle covers business use (some personal car insurance policies do not). This is the responsibility of the employer. You need to check that the person driving has a full driving licence, that the vehicle’s MOT certificate is up to date and that the insurance policy covers all eventualities. You may want to consider a specialist fleet management product.
How are my vehicles being driven?
If you have a fleet of vehicles then it’s only natural that you’ll want to know that they’re being driven well. This can lower your insurance costs and also gives you peace of mind on your substantial investment. A good fleet tracking solution is the key here. It won’t only tell you where your vehicles are and where they have been but also how much fuel your drivers are using and how efficiently they are being driven.
What risks am I taking?
If you don’t have the correct insurance arrangements in place you could be liable for tens of thousands of pounds in payments in the event of accident. You and your company could also be prosecuted under corporate manslaughter or culpable homicide regulations if someone were to die in an accident caused by one of your grey fleet vehicles. This is why it is vital to understand your responsibilities before you start using any vehicles in your day-to-day business.
If you have any questions about fleet management or your grey fleet obligations then please contact our experts and we’d be delighted to answer them.
