Does your company vehicle personal use policy cover every possible scenario?
Allowing personal use of corporate vehicles requires more than determining the employee’s financial contribution. With the proliferation of the gig economy, fleet managers now must decide if their vehicles can be used for employees’ personal gain.
Previously, the notion of personal gain was limited as employees didn’t have many ways to easily utilize a company vehicle during in their free time. Nowadays, the ubiquity of on-demand work provides countless options, from food delivery to furniture transport, to earn a second income.
Fleet Policy Risks
There are a variety of risks associated with not having established guidelines, such as liability implications of something occurring on a company-owned asset and increased fuel costs. Resale value may diminish depending on how the vehicle is used. If branding is included on the vehicle and it’s being used for something that the company doesn’t want to associate with your brand, then that may cause a negative impact. Additionally, there may be increased maintenance costs depending on the use of the vehicle.
What to include in your fleet policy
When establishing guidelines, consult your company culture. Your organization’s values should direct your approach to your company vehicle personal use policy.
Here’s some sample policy language as a guide:
Some fleet managers build the foundation of the personal use section in their fleet policy with language that mandates the proper and lawful use of the vehicle, such as: It’s expected that employees will always, during work and while off-duty, operate their company vehicle in accordance with laws and regulations and act in a responsible manner as a representative of the company.
If you don’t wish to permit the use of company vehicles for personal gain, you may want to include language that states: Using a company-provided vehicle for a taxi, ridesharing and delivery service is strictly prohibited.
Company vehicles may not be used for:
Commercial uses other than the intended purpose.
Any political or activist campaigns.
Off-road or recreational use.
Routine multi-person transportation such as transporting sports teams, field trips or as a taxi.
Towing anything e.g. boat, trailer, etc.
Picking up hitchhikers.
Be as detailed as possible to leave no room for creative interpretation. The points above cover the gamut of what’s possible with a company vehicle. Review them to decide what’s appropriate to include in your company vehicle personal use policy.