If your organization has employees who use personal vehicles for business purposes, you may be exposed to unexpected risk. Even if your employees have personal auto policies, if an accident occurs while an employee is on business, your organization may become responsible for damages. If an accident is severe, the injured party will likely seek out the deepest pockets, which could be your business. Therefore, it is vital to make sure you communicate your company’s auto activities to your insurance advisor to make sure your organization has proper coverage.

Depending on how employees use their personal vehicles in your business, you should evaluate ways to control your risk. For example, you should seek proof of insurance from any employee who drives for business, and you should run motor vehicle reports (MVRs) to ensure safe driving records. Additional steps may be warranted if personal autos are used for business on a frequent basis or by a large number of employees.


Approved Driver List: Your organization’s management needs to approve the use of any vehicles for business use. The approval process should include reviewing motor vehicle records and personal auto insurance coverage.

Vehicle Standards: Establishing and enforcing guidelines for consistent vehicle maintenance helps mitigate your risk. Additionally, consider regularly collecting maintenance reports to document the reliability of vehicles used for business.

Regular Communication: Effectively communicate your organization’s personal vehicles for business use policies through handbooks, emails, posters, and other communication channels. Reminding employees of your company’s policies is an effective way to help mitigate your risk.

Rental Policies: The use of rental vehicles for business use is also a possible liability risk. Make sure to provide your employees with guidelines on which rental insurance coverages to purchase during the rental process. Furthermore, enforcing rental documentation guidelines and protocols helps control your risk.

Distracted Driving: Establish a clear company-wide policy prohibition against texting or emailing while behind the wheel. Distracted driving is a leading cause of accidents, and employees who respond to work-related texts or emails while driving may increase your company’s potential liability.


In addition to providing comprehensive insurance and risk management services, RBN provides a full-service coverage platform to our clients. RBN can help develop safety procedures and programs, employment policies, retention strategies, employee handbooks, and wellness programs.

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