Grey Fleet Risk, What you should know...
What do we mean when referring to Grey Fleet drivers and driving. The name is given to an employee that drivers their privately owned vehicle on company business rather than than a vehicle supplied by the company, be it an issued company car, rental car or pool car or another vehicle. Therefore, personal vehicles being used for business purposes of which the company has no control or responsibility in maintaining or insuring.
Managing a pool of grey fleet drivers and their vehicles can be a challenge, it's a risk you need to manage as your responsibilities are the same as if you issued a company vehicle. Managing this risk take's time which is a cost to your business in addition to running your regular vehicle fleet.
The term 'grey' is used because it's deemed as a grey area of responsibility, but it shouldn't be. The law is very clear, your business has the same responsibility as if it was a company-issued vehicle. This means you have a legal responsibility to ensure whilst the vehicle is driven on ANY company business trip (even to the post office) that the vehicle is safe and legal to drive, the that the driver has a validate driving licence and you are managing the associated risk.
What is the Grey Fleet Risks
- Is the grey fleet vehicle roadworthy?
- Do you ensure the tyres, seatbelts, wiper blades are serviceable?
- Is the vehicle maintained to manufactures recommendation?
- Is there any manufacturing fault recalls outstanding?
- Does the vehicle hold a current valid MOT?
- When was the vehicle last serviced?
- Grey Fleet Vehicle Insurance
- Does the driver hold a validate insurance policy the vehicle?
- Is the insurance in the name of your employee?
- Does the insurance include a business class of insurance (crucial)?
What restrictions if any, are on the policy schedule
- Regular Grey Fleet Checks
- Do you request your grey fleet driver to carry-out regular checks on their vehicles?
- Can you evidence driver checks, if you had to attend court to defend your company in a claim?
- Grey Fleet Company Policies & Procedures
- Do you provide to your grey fleet drivers a company policy on how you expect them to operate, maintain and manage the vehicle if it is to be used on any company business?
- Do you consider restricting the Age of the vehicle or type of vehicle (most grey fleet vehicles are over 8 years old)
There is a true cost of grey fleet management, but less than the risk
Incentivising drivers to use their own private vehicles for business travel can be more cost-effective, particularly if they are low-mileage users than managing a fleet of their own vehicles. However, reimbursing fuel costs for those that have a need to travel for work needs to be factored in.
Managing grey fleet claims, such as mileage, fuel costs, not to mention the potential liability for any accidents or vehicle damage employees may encounter whilst they drive their vehicle for work purposes – this may cost the company more unless you have a process to check and manage your grey fleet driver fleet, they need to be managed correctly otherwise you will expose your company to further risk.
Company or pool vehicles are usually newer and are often in much better condition than private vehicles which are much older and become more at risk when are driven on longer business journeys. Other considerations should be, when does a grey fleet driver usage become a further risk - vehicle age, annual mileage must be considered by the employer when deciding if the benefits of a grey fleet outweigh that of a regular business fleet.
This is a duty of care issue, so take it seriously - ask yourself this simple question. Would you ignore your company own or leased fleet in the same way, as you ignore your grey fleet drivers - if so why do you apply poorer standard to these drivers than others. It makes no sense, your responsibilities are the same.
Take advantage of Road Risk Managers Grey Fleet Management Solution today, this makes absolute sense and removes some of the responsibility and process back to the driver directly to provide all the relevant information in a single account which you can monitor. You can also request the driver to conduct a licence check, carry-out risk assessment or training and communicated your requests in the same account.
For more information we provide a simple but effective demonstration of Road Risk Managers 'Driver & Vehicle Information Solution 'DAVIS' for Grey Grey Fleet Checks, Monitoring service please see the video below.