Market Trends

Fleet Policy Exceptions Increase Corporate Liability Exposure

April 8, 2001

by Mike Antich

What if your company is sued over a vehicle-related problem caused by an employee driver? If this should happen, it is important to know that subsequent legal decisions may be based on prior precedents and exceptions you have made to your company vehicle policy. You may potentially create a new problem by making an exception in resolving a driver-related problem. The last thing you want to do is to create a new problem in the course of resolving it, and the surest way to do so is to make an exception to your company’s vehicle usage policy. An attorney can tear the most carefully developed fleet policy to shreds upon discovering the first precedent-setting exception and using it to argue negligent entrustment of a vehicle or negligent retention of an employee driver. It is extremely important that the rules governing the withdrawal of a company vehicle privilege be uniformly enforced for all employees. You should not set precedent by allowing exceptions, even if it involves a star salesperson or senior corporate officer. If your company becomes embroiled in litigation involving a company vehicle because of a problem driver, these exceptions and prior policy precedents will be used against you. Ensure Drivers Are Aware of Vehicle Use Policies
As the fleet manager, it is your responsibility to establish policies governing company vehicles and communicate these fleet policies to employee drivers. Each of your drivers should know the rules governing the use of a company vehicle. Not only should your drivers be aware of these rules, but they must also understand what actions will be taken for non-compliance.Your drivers need to understand the circumstances under which the company may revoke the use of a company vehicle. In extreme situations, you will be responsible to withdraw a problem driver’s privilege of using a company vehicle. Some reasons (but not all) for withdrawing the company vehicle privilege are:
  • A conviction or a guilty plea to driving a vehicle under the influence of alcohol or a controlled substance.
  • Abuse or misuse of the vehicle or failure to comply with the rules and procedures stipulated in your written company vehicle policy.
  • A conviction for reckless driving.
  • Failure to remove ignition keys from the vehicle, which results in the vehicle being stolen or damaged.
  • Operating the company-provided vehicle in an unsafe condition after being notified of this unsafe condition and failing to take actions to correct the problem.
  • Leaving the scene of an accident without making the required reports to the fleet department and appropriate law enforcement agency.The point to stress is that these rules must be uniformly enforced to all employees. If litigation should occur as a result of an employee driving a company vehicle, the plaintiff’s attorney will ask to review your written fleet policy guidelines. Prior exceptions to fleet policy, if found, will render you and your company vulnerable to negligent entrustment or negligent retention allegations. Don’t Break this Rule
    Everything written on this page can be summarized in a one-sentence rule: There should be no exceptions to your company vehicle usage policies. As the fleet manager, it is up to you never to break this rule. Let me know what you think.
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    Author Bio

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    Mike Antich

    Editor and Associate Publisher

    Mike has covered fleet management and remarketing for more than 20 years and entered the Fleet Hall of Fame in 2010.

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