According to a report by fleet management provider Lex Autolease, 88% of those surveyed said that they would take up a company car if the option was offered by their employer. Similarly, almost half of fleet managers asked said that company cars are becoming more important in both recruiting and retaining talented members of staff.
While all of that may sound great for employees, for employers making sure that company vehicles are suitable is yet another job that needs to be done. If you’re in this position yourself, here’s what you need to know.
Insurance Needs
Before you can even think about offering a company car to an employee, you need to make sure that the vehicle is covered under your business insurance. This applies to both vehicles that will be used by a single individual, or those used by several different employees and can help to ensure that you’re covered against property damage and liability to protect your company’s valuable assets.
Similarly, you may want to consider requesting that some of your employees take out vehicle insurance on their own behalf, especially if they occasionally use a work vehicle to perform any errands on behalf of the company. This will ensure that they’re covered and that you won’t be at risk of paying any fees if they were to be involved in an accident.
Maintenance and Servicing
Worryingly, the majority of company car drivers think that it is the employer’s responsibility, rather than their own, to ensure that their vehicle undergoes regular maintenance and servicing. According to a study by Venson Automotive Solutions, 58% of those asked thought that it was their employee’s responsibility. If we take this as an accurate representation, it’s easy to think that this behavior is increasing fleet management costs for employers.
If you have found that your company vehicles have an above average number of problems when returned, it may be in your best interest to ensure that all of your employees are aware of their responsibilities regarding this matter.
Breakdown Cover
Finally, you’ll want to take out additional breakdown cover. For many types of businesses, from courier services to field sales teams, keeping your fleet of vehicles moving is critical to your company’s success.
While you can help to minimize any chance of problems through regular maintenance and servicing, it’s impossible to completely eradicate the chance of any issues from occurring. By taking out additional breakdown cover, though, which can include roadside assistance and recovering, you’ll be able to make sure that any delays are limited and your employees can get back to doing what they do best.
The lure of a company car can be a great incentive to a potential new employee, though it comes at a significant cost to the employer. No matter how much an individual could strengthen your business, it’s important that you don’t risk jeopardizing your company’s finances by trying to cut any corners.
