For many companies, business operations require employees drive a company vehicle or use a personal vehicle while conducting company business. For the protection of the company, it’s very important that a documented and signed Vehicle Use Agreement is on file to show the employee has read and is willing to comply with company policies and procedures for vehicle use.
Implementing a Vehicle Use Agreement is just part of a business’ overall Fleet Safety Program. I’ve recently written about the Elements of a Fleet Safety Program and you can follow the link to get more detail. Once an employee’s driving record and has cleared the company’s MVR Criteria and they’ve been approved to drive, they should return a copy of the signed Vehicle Use Agreement.
At the end of this article, I’ve provided a link to a Word Doc that can be used as a template, but for now, I’ll hit the high points of how it should be structured for both company vehicles and personal vehicles used on company business. Before you finalize the agreement, check with your legal counsel and Human Resources department to make sure the policy is in accordance with current regulations, and will not conflict with other labor practices.
For company vehicles, the agreement should clearly state the company’s policies and procedures regarding:
- Maintaining a current driver’s license
- Safe driving practices
- Authorization for the company to check the driver’s Motor Vehicle Record (MVR)
- Use of the vehicle by other than the employee, including any age restrictions on other operators
- Garaging restrictions
- Responsibility for parking or traffic violations
- Reporting of accidents
- Proper use of mobile phones
- Making modifications to the vehicle
In addition to the items above, an agreement for the use of a personal vehicle on company business should state the driver is required to:
- Comply with state regulations on licensing, vehicle registration and inspections
- Carry personal insurance coverage with specified limits
- Provide certificate of insurance to the company
- Authorize the company to check his or her MVR
In addition, the agreement should state the company’s policy regarding:
- Reimbursement for use of personal vehicles on company business
- Reporting of accidents
- Responsibility for parking and traffic violations; operating expenses, and the deductible in the event of an accident
Clarifying these issues up front will ensure safe use of vehicles on company business, and it will avoid conflicts and misunderstandings in the event of an accident or violations of company policy.
As promised, here is a link to our recommended Company Vehicle Use Agreement template.