Traveling Together: When Work Colleagues Share A Ride

There are many reasons why work colleagues may need to travel in the same vehicle, from travelling to off-site meetings, making deliveries, or visiting clients and service users. While this can be convenient for both the employer and the employee, it can also raise a number of legal and safety issues. If an employee is using their own vehicle for work purposes, the employer has a duty of care to ensure their safety. This includes ensuring the vehicle is safe and legal, and the driver is appropriately licensed and insured. In some cases, it may be more practical for employers to provide a company vehicle. This can help minimise legal and safety risks. However, it is important to carefully consider the costs associated with providing company vehicles, such as insurance, maintenance, and depreciation. Ultimately, whether or not work colleagues can travel in the same vehicle depends on the company's policies and the local laws and regulations.

Employers can require the use of personal vehicles for work purposes

If an employee is required to use their own vehicle for work, the employer may be held liable for any unlawful actions or negligent behaviour. This is known as vicarious liability. For example, if an employee gets into a car accident while using their car for work purposes, the employer could be held responsible for any damages. To protect against this, employers can take steps such as checking their employees' driving history and implementing company policies around safe driving.

Additionally, employers can purchase hired and non-owned auto coverage to protect themselves. Hired coverage protects in situations where the company or employee does not own the vehicle, and non-owned auto coverage protects the company when employees use their own cars for work.

To further limit liability exposure, employers can request that employees provide proof of their personal car insurance annually and implement an "Individual Vehicle Use" policy that defines what the company will and will not permit. It is also important to note that employers are not required to reimburse employees for mileage in most states, although they may choose to do so.

Employees may be reimbursed for the business use of their vehicles

If reimbursement is not provided, employees can deduct vehicle expenses on their individual item tax returns as a miscellaneous itemized deduction.

If reimbursement is provided, it is usually calculated using the IRS standard mileage rate, which is optional for employers. This rate includes fixed and variable costs such as depreciation, insurance, repairs, tires, maintenance, gas, and oil. Alternatively, some employers may choose to calculate the actual cost.

To support any deductions, employees must keep written mileage records that show the length and purpose of their business trips.

Employers may be liable for accidents that occur when employees are driving for work purposes

In general, if an employee is travelling for work purposes and causes an accident, the employer may be held liable for any resulting injuries or property damage. This is known as "respondeat superior" or "vicarious liability", which refers to the legal responsibility of an employer for the actions of their employees in the course of their work.

Vicarious liability applies when the employee is acting within the scope of their employment and their actions benefit the employer. This means that if an employee is driving a company or personal vehicle for work purposes and gets into an accident, the employer may be held accountable, even if the employee is usually not required to drive for their job. For example, if an employee is driving to an off-site work event or running a work-related errand during their lunch break, their employer may be held vicariously liable for any accidents that occur.

However, it's important to note that commuting to and from work, even in a company car, is generally not considered on-the-job driving and employers are typically not held liable for accidents that occur during this time. There are exceptions to this rule, such as when an employee makes work-related stops on their way to or from work, or when they have to drive to and from a job site other than the employer's usual place of business.

In addition to vicarious liability, employers can also be held directly liable if they are found to be negligent in their duty of care to prevent accidents. For example, if an employer knowingly allows an employee with a history of drunk driving or unsafe driving practices to operate a vehicle for work purposes, and that employee subsequently causes an accident, the employer may be held directly responsible.

To mitigate the risk of liability in these situations, employers should implement clear policies and procedures, such as conducting background checks, periodically checking driving records, implementing drug and alcohol testing policies, providing employee training on safe driving practices, and carrying appropriate insurance coverage.

Employees should ensure their insurance covers business use

When it comes to work colleagues travelling in the same vehicle, there are a few things to consider in terms of insurance coverage. While it is not illegal for colleagues to travel in the same vehicle, it is important to ensure that the driver's insurance covers business use. This is because using a personal vehicle for work purposes can introduce certain risks and complexities.

Firstly, it is crucial for employees to review their insurance policies and ensure that business use is covered. Most personal auto insurance policies provide coverage for vehicles used for business purposes, as long as they are not used for "hire or reward," such as delivering goods or transporting passengers for a fee. However, it is always best to confirm with the insurance provider to avoid any misunderstandings or gaps in coverage.

Secondly, in the event of an accident or incident while using a personal vehicle for work, it is important to understand the liability implications. In some cases, the employer may be held vicariously liable, especially if the employee was acting within the scope of their employment at the time. This means that both the employee and the employer could be named in a lawsuit, and the employer's insurance may also need to respond. Therefore, employees should inform their insurance providers about their business use to ensure adequate coverage and avoid any complications in the event of a claim.

Additionally, employees should be aware that using their personal vehicles for work may affect their insurance premiums. Sales representatives or individuals who use their vehicles extensively for business purposes may experience higher premiums. It is important for employees to discuss their specific circumstances with their insurance providers to understand any potential implications and ensure they have the necessary coverage.

Lastly, employers should also consider their own insurance coverage and risk management strategies. While employees' personal insurance is typically the primary coverage in the event of an accident, employers may want to explore additional protections. This could include hired and non-owned auto insurance, which can provide coverage for accidents involving personal vehicles used for business purposes. Alternatively, employers may opt to provide company vehicles for business use, ensuring that these vehicles are appropriately insured and maintained.

In summary, when work colleagues travel in the same vehicle, it is essential for employees to ensure their insurance covers business use. This helps protect both the employee and the employer from potential liabilities and financial risks associated with using personal vehicles for work-related activities. Open communication between employees and their insurance providers is key to ensuring adequate coverage and peace of mind for all parties involved.

Employers should keep detailed records of employees' use of personal vehicles for work

It is common for employees to use their personal vehicles for work-related purposes, such as travelling to off-site meetings, making deliveries, or visiting clients. While this can be convenient for both the employer and the employee, it can also raise legal and safety issues. Therefore, it is important for employers to keep detailed records of employees' use of personal vehicles for work.

Firstly, employers should establish a clear policy regarding the use of personal vehicles for work. This policy should outline the rules and regulations that employees must follow, such as ensuring their vehicles are properly maintained, that they have valid insurance, and that they comply with road traffic laws and regulations. It should also include details of the procedure employees should follow in the event of an accident or incident while using their personal vehicle for work.

Secondly, employers should conduct regular vehicle document checks to ensure that all vehicles used for work are roadworthy, safe, and properly maintained. This includes obtaining annual (or periodic) documentary proof of vehicle tax, MOT, servicing, a valid driving licence, and business use insurance cover. Employers should also check that employees conduct regular vehicle safety checks.

Thirdly, employers should provide training on safe driving practices and ensure that all staff understand they are expected to drive safely, responsibly, and legally. This includes adhering to any company policies related to the use of electronic devices while driving, such as making or receiving calls.

Finally, employers should keep detailed records of employees' use of personal vehicles for work. This can include mileage logs, fuel receipts, and any other relevant documentation. This information can be used to calculate mileage reimbursement and to defend against any potential legal claims related to accidents or incidents that occur while employees are using their personal vehicles for work.

By keeping detailed records and taking these other relatively simple steps, employers can minimise the risks associated with employees using their personal vehicles for work and ensure that both their organisation and their employees are protected.

Frequently asked questions