Business vehicles can be a big boost to your business for a number of reasons. As outlined by Microsoft, you have the potential to improve branding, provide a perk for employees that also reflects favorably in tax, and reduce commute problems before they arise. However, for all of the positives that cars can provide to a business, it’s important to consider whether you’ve taken everything into consideration and whether you can indeed harness the full potential of that commercial vehicle.
Personal and business liability
Road travel has inherent risks when it comes to financial liability. According to the Insurance Information Institute, the rate of auto claim has been rising year-on-year, with 3.89 claims per insured car year raised in 2018. As a result, it’s important to consider your liability if a commercial vehicle accident does occur. Some companies take complete liability for their vehicles on the road, while others will choose to have employee personal liability. Whichever way, it’s important that you are up to date with local laws and have good legal protections as an accident can happen at any time. Consider fitting commercial vehicles with a dash cam and vehicle telemetrics to help support any potential claims, and ensure your business is in fit financial health to be able to respond to any litigation.
What the car does for you
The primary benefit that a car offers the business is an opportunity for branding. By being on the road, the vehicle will offer a reminder to potentially thousands of unique drivers throughout the year. As a result, it’s important that the message on any vehicle is clear and memorable; think how Google used their simple design on white cars prior to the street view rig becoming commonplace. As Forbes note, having cogent graphic design is important across all parts of the business. Livery and messages should come together in a simple and identifiable way. Before investing in a commercial vehicle, make sure that you have the graphic design to support it in a constructive way.
Aside from personal liability, the company car necessitates some form of moderation over your employees. Is it considered working hours to be in the car? Are they allowed any personal use of the vehicle, or is it purely for the work commute? Will expenses – for example, fuel -be reimbursed, or is a company card going to be the way forward? Before establishing use of a company vehicle, ensure that you have a rigorous HR policy in place that has been checked by your legal professionals and protects both yourself and your employee.
Taking account of these crucial areas will help to create a company vehicle policy that will stand up to scrutiny and provide benefits to your business. It will ensure liability is covered sufficiently, that your staff are protected, and that you are able to fully realize any potential growth. If that’s covered, then a business vehicle may well be right for you.