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The risk control area of my employers general liability insurance carrier does a couple of visits to our facility and jobsites a couple of times a year.  They usually look for any safety violation, let us know anything that should be added to our safety program, handbook, etc.  Usually these are just recommendations, basic ones that we've had no problem changing, following or whatever.  One of the recommendations they've suggested this year is that for all of us that run errands for the company using our personal vehicle should submit proof of insurance to our employer.  OK, I have no problem with that, but they're also suggesting that we would all have a certain dollar amount of liability limits (example:  Bodily Injury Limit of $300,000) and that we should all allow them to run MVR's (motor vehicle record checks) on all of us.  Their reasoning is that if we're on an errand for the company and have an accident, the person we're involved in the accident with could in turn sue the company.   This may be standard procedures in other companies, but to me it sounds very "big brother-ish".  Am I taking this the wrong way??   Do any of your companies have writting policies concerning this?
Thanks
Marie

Some of my bosses/colleagues have company cars.  However I would recommend that you are either covered by your company to run such errands eg. take out their insurance or else don't bother with such errands.  I have refused to do this in the past because I would have had to use my own petrol and personally if you're not providing me with a company car, then do not expect me to run errands for you.  Last thing you need is to end up in court with someone suing you or your company because you've had an accident.

Sorry but I would be against this.

G

Your company's solicitor/attorney should advise on this - as to whether the request is legal and feasible.

This is, fundamentally, about risk: avoiding the possibility of your company being sued even if the vehicle being driven on company errands is not a company vehicle.  If it were a company vehicle, then it would/should be maintained up to a certain standard to comply with the risk assessment requirement.

The only way out of this matter is to say to your company: fine, that's what you want, but IF that is really what you want then I won't be able to run errands for you in my vehicle because although I can maintain it up to an acceptable, roadworthy standard (as required by my country's/my State's law) I may not be able to maintain it to the standard that the company insurers might require, and I'm not prepared to subject my own vehicle to your tests. Unless you (a) pay for the tests and (b) pay for any repairs/maintenance to bring it up to "your standard".  

If, however, running errands, and having your own vehicle to run those errands, is part of your contract, then you may have no option except to comply with your company's requests.

Hope my convoluted thinking is reasonably clear!

Raindance

For Information here in the UK our company policy is that we are not to use own cars for business use.  We are to use in order of preference the following:  Pool Car, Managers (Company) Car, Hire car, Taxi and if all these have been exhausted use our own cars.  Hence we have a very big account with a hire car company!

Georgie Girl.

Yes Georgie Girl,

I should have added we have various accounts set up with local taxi companies for running short errands.  Might be worth looking into if your company cannot provide pool car, Marie.

G

My question is how do they distinguish that you're running an errand for the company and not yourself?  If you're in an accident, who's to say you're not on your own time?  Just curious...

CountriGal
Peer Moderator

What your company is doing is protecting themselves from SOME liability.  Not all, but some, and it is within their rights to do that.  If you are not, therefore, required to use your own vehicle to run errands for the company, then you probably shouldn't.  Besides, how much gas are you using running errands for them?  Are they at least paying you mileage?  Let them run their own errands!

Rr

I would refuse to drive my own vehicle on company errands. There is definite liability in this area.

If you were willing to do it, I would require that they pay the difference in increasing the insurance and that they pay the maintenance costs on the vehicles.

You should definitely be submitting expense reports with the mileage.

Marie

Another thing to consider would be your own insurance limitations. Your insurance company could cancel your personal policy if you start using your vehicle for work (ie-running errands). I would suggest not running errands for work in your personal vehicle. However, if that's part of your job description, then you need to contact your insurance company to add a commercial aspect to your policy (of course, I would also negotiate compensation from my employer for the higher premiums).

Hope this makes sense,
Tif

I guess I should have clarified a little better - when errands are ran, 99% of the time it's not specifically for the office.    For example, if I go to the bank for myself at lunch, I'll ask if there's anything I need to take for the office while I'm there (our office in not in the downtown area, we're in a rural location), and usually whoever's closest to a mailbox in the afternoon will drop off the mail.

I know with all the litigation going on these days, businesses are doing implementing more and more "CYA" policies.  We're in the construction industry so alot of my time is spent
writing letters and memos doing exactly that.  But I guess my biggest concern is, at what point does protecting your business turn into invasion of privacy of your employees?  ("invasion of privacy" may be too harsh of a term, but I think you get my meaning).

Thanks for all your input on this.  

Marie

Marie,

I am also in the construction industry.  We do several things to cover employees who drive their own vehicle for company use.

Any employee who is reimbursed for the use of their vehicle for company purposes must provide a certificate of insurance from their carrier to prove the vehicle is covered.  I don't know if we require specific limits, but we might.    These same drivers are also on the company's approved driver's list and periodic checks are made on their record by our insurance company and by our Safety Director.  They sign a release to this effect when hired or when added to the list.  If they ever become uninsurable by our carrier, they're removed from the list.  Depending on the severity, we will either inform the insurance carrier they really need to be able to drive for us or start paying them a "rental fee" to use their own vehicle for company purpose.  This fee is intended to cover wear and tear, mileage and increased insurance costs.  

Now someone like me who isn't on the driver's list and doesn't get reimbursed isn't necessarily required to provide proof of insurance but the subject has been broached with me.  My response was that I would just stop doing company errands because I wasn't going to pay an increased rate for very few errands I run.  Whether or not I get reimbursed for my mileage depends on whether or not I ask for it.  

I agree, it get invasive when companies start asking for all this personal information; but, they have to dowhat they can to keep costs down (including insurance) just like everyone else.

With all of the sue happy folks around these days, it would probably be in the best interest of your company to come up with a policy for those small errands run "while I'm out".  If you have an accident in your vehicle while doing an errand for the company (and even if you're handling a personal errand at the same time) your personal carrier can refuse to cover you and even possibly drop you for not revealing the business use to them.  On the other hand, your employer can be liable for the cost to repair the vehicle and workman's comp costs becuase you were injured "on the job".  It would be the same as if I got hit by a car walking across the street to make a personal deposit at the bank but picked up some papers for the company "while I was there".  I'd be on a company errand on company time and thus workman's comp would have to at least review the incident.



Michelle

Thanks for all of your responses.  We haven't drafted a policy yet, but all these responses gives me alot of stuff to consider when we do.... (sigh......)

Michelle - it's good to hear from another "construction worker".  I may have to pick your brain again sometime.  

But as for today......Bossie's away...... time for the admins to play!!!!


Have a great day everyone!
Marie

Edited by marieh2000 on 25/01/06 07:37 PM.

I work for a construction company too but in the UK.  I am NOT allowed to use my own car for errands/company business at all as its only insured for personal use and if I had an accident whilst on a company errand/business my insurance company wouldn't pay up!

When I need to run errands/company business I used one of the company's vans!

Coz

Some time ago, I worked for an independent charity providing healthcare.  The rules on car driving for work purposes were as follows: car drivers (nurses, doctors, social workers and senior admin) were specifically authorized to drive their cars for work purposes.  The cars had to be in a roadworthy condition.  Mileage was paid (according to size of engine, monthly on submission of signed mileage cards, countered signed by the person's manager) according to a certain rate AND a lump sum, paid annually (according to size of car engine) which assisted with maintenance.  It worked fairly well, and no-one actually "made" money out of the system.  

Raindance