| Company provided vehicles, owned or
leased, result in the employer assuming 100 percent
liability for that vehicle 24 hours a day, 7 days a
week. There is no distinction between business and
non-business in the case of an accident involving
liability claims. There is also no distinction of
liability when the driver is not the employee of the
company. The availability of a company provided
vehicle to family members living at the driver's home
address, all with unknown driving history and
experience, increases the liability risk factor.
A Car Allowance program is able to reduce the risk
and liability for the company since the driver owns the
vehicle. A properly designed and maintained allowance
program provides the employee with a fair and
accurate vehicle reimbursement and removes the
company from liability when the vehicle is driven for
personal use outside of business hours. |
