Many small businesses and other organizations furnish company owned vehicles for transportation needs including trucks, vans, buses and automobiles. However, it is not uncommon for staff and volunteers to drive their own personal vehicles for business-related transportation.
It is important to recognize that your business can be held liable for damages by allowing the use of non-owned personal vehicles for business purposes. In an effort to keep everyone safe, and to protect the organization from claims arising from the use of personal vehicles, the following safety precautions should be followed:
- Restrict who is allowed to drive. Studies show that accident rates are higher for drivers under he age of 25 and over 70; therefore, drivers of personal vehicles should be between 25 and 70 years of age.
- Require proof of automobile liability insurance. This should be obtained annually and kept on file. The following minimum auto liability limits should be required:
- Bodily Injury Liability – $100,000 each person / $300,000 per occurrence and;
- Property Damage Liability – $100,000 per occurrence.
- Inform drivers that their personal automobile insurance is the primary coverage for any and all accidents and injuries that occur during the transport. They should contact their insurance company and inform them that they will be using their personal vehicle for business purposes.Read More »Managing use of Non-Owned Personal Vehicles