Company Vehicle Personal Use Agreement: What You Need to Know
Having a company vehicle can be a great perk for employees, but it can also be a liability for the company if personal use agreements are not properly put in place. In order to avoid any potential legal or financial issues, it`s important to have a well-structured policy that outlines the terms and conditions of personal use.
First and foremost, it`s important to define what constitutes personal use of the company vehicle. This can include commuting to and from work, running errands, and attending personal appointments. However, it`s important to also specify what personal use does not include, such as using the vehicle for side jobs or using it for recreational purposes.
Next, the agreement should outline any restrictions on personal use, such as mileage limits or restrictions on driving outside of a certain geographic area. It`s also important to specify who is responsible for any damage incurred during personal use, including accidents, tickets, and fines.
Another important factor to consider is insurance. The company should have a policy in place that covers any accidents or damage that occurs during personal use, and employees should be required to provide proof of their own insurance as well.
Finally, the agreement should include consequences for violating the policy, such as revoking personal use privileges or disciplinary action.
By having a clear and well-defined company vehicle personal use agreement, both the company and the employees can enjoy the benefits of a company vehicle without any legal or financial risks. Make sure to communicate the policy clearly to all employees and regularly review and update it as needed.