| re and more companies develop employee vehicle | | | | that an employee’s company would not want |
| programs, it is important to understand the liabilities and | | | | to be held accountable for damages incurred if said |
| benefits versus simply paying employee IRS mileage | | | | employee didn’t follow specific rules and |
| to drive their own personal vehicles, or use company | | | | guidelines regarding company vehicle use. However, |
| cars. With the increase in the IRS mileage allowance, | | | | the largest liability damage awards in these cases, |
| those companies who currently pay employees the | | | | which are well into 7 figures, involved employees |
| IRS reimbursement rate for business miles are leaving | | | | driving their own personal vehicles on company |
| money on the table relative to having a company | | | | business, not company vehicles on personal business. |
| vehicle program. And this is especially true for those | | | | So now the situation is reversed, and if the employee |
| with higher business mile drivers. | | | | became involved in a personal injury or death accident |
| As we review the economics, putting drivers who | | | | where they were at fault, the company would then be |
| travel more than 12,000 business miles a year in a | | | | held liable for a higher portion of damages. |
| company provided fuel efficient car or SUV, like a | | | | So the facts speak for themselves in this case; larger |
| Chevy Impala or a smaller SUV, is a no-brainer relative | | | | liability exposure comes from allowing employees to |
| to paying IRS mileage. But an important factor to | | | | drive personal vehicles on company business, and not |
| consider is what your liability exposure from either | | | | the other way around. And sometimes driving a |
| method is, in regards to personal or business use of | | | | personal vehicle for company business is a common |
| company vehicles. There are some interesting facts | | | | situation that can not be avoided easily, which will put a |
| that most people may not be aware of when taking | | | | company at a greater liability risk. Evaluating risk is a |
| these decisions into consideration, and educating | | | | tough decision for any individual or company, but |
| oneself on the history of cases and all current federal, | | | | paying IRS mileage in addition to covering personal |
| state, and local laws is important. | | | | injury liability becomes much more expensive than a |
| Most businesses focus on the liability the company | | | | well maintained company vehicle program. And there |
| takes on when adding a company vehicle program. | | | | are ways to further reduce the costs of such |
| This makes sense, and is a common practice in order | | | | programs, which makes them affordable for more |
| to try and evaluate potential risks for a company. For | | | | businesses that most people are aware of. Especially |
| example, if an employee is driving a company vehicle | | | | in regards to leasing options, or using hybrid or |
| for personal matters, and becomes involved in a | | | | alternative fuel cars and trucks, there are numerous |
| personal injury accident where they were at fault, | | | | options available when choosing a company vehicle |
| there is liability exposure there. And it is understandable | | | | program that is right for your business. |