It's Time You Had a Personal Auto Use Policy

Written by on 10/3/2016 3:45 AM in , , , , . It has 0 Comments.


Do you require employees to have a personal vehicle available to complete assigned tasks? You may be creating a “required vehicle exception” according to a recent California appellate case ruling (Moradi v. Marsh USA, Inc.) - which could affect your workman's comp insurance rates…

Vicarious liability

The appellate case held an employer could be liable in the event of an employee causing a motor vehicle-related injury – even in a personal vehicle used solely for travel to-and-from work. According to the court, under the “required vehicle” exception to the “going and coming” rule, employees could be considered as acting within the scope of employment when commuting, thus “the doctrine of respondeat superior applies.”

How can you minimize liability?

• Ensure job applications, descriptions and functions don't list “driving a personal vehicle for work” as essential to the position.

Minimize employees required to maintain personal vehicles for company business.

Inform employees that personal vehicles aren't a requirement to completing job assignments.

Require written permission before the use of personal vehicles for company business.

For those using a personal vehicle on company business, require the submission of the declaration page of the employee’s personal automobile insurance each year to confirm adequate coverage. (Those requiring coverage over state minimums may be required to cover excess premiums.) 

Explicitly note the company is not responsible for any damage, fines, or moving violations incurred during company-related business.

Implement a “Personal Vehicle Use” policy outlining your business’s right to revoke any employee’s right to drive a personal vehicle on company business.

Don’t be an accident waiting to happen. Get the workman's comp insurance advice you need with the help of Minnesota Comp Advisor today.

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