Providing Vehicle to Employees

Many employers might end up liable for accidents and law infringements of their employees operating company’s vehicles whether during or off work hours. In particular this might become important in a situation where employee takes a company’s vehicle home and causes an accident during his personal use of the vehicle. In some cases, an employer could be penalized for employee’s operation of a vehicle without a driver’s license, in others – could be sued for damages that such employee caused with the company’s vehicle.
How employers can get prepared and protect themselves from potential liabilities?
Although different companies might require different approaches and extensive protections, the basic process is relatively simple and straightforward:

a. Have a proper “Vehicle Usage Policy” in place. Have all types of uses and behaviours defined and clearly express what is allowed and what is not during off hours use of the vehicle.

b. Implement a recurring training routine to ensure that employees are aware of the policies and employer’s expectations.

c. Verify employee’s driving history – use a driver’s abstract to ensure that the vehicle is not being issued to “dangerous” drivers or proper precautions are put in place.


Contact us to get further assistance or to order your customized Vehicle Usage Policy at [email protected]



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All information provided in this video is for informational and reference purpose only. Nothing contained herein shall be considered as a legal advice or instructions to be acted upon. CBES – Canadian Business and Enterprise Services does not offer legal advice online or on its YouTube channel. Please consult a professional before you act in reliance on the information contained in our videos.

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