Research suggests that Britain is becoming a nation of “hidden business fleets” with almost a third of business drivers not insured adequately for business use.
The research from Masternaut – a British telematics company – highlighted the grey area of employees who don’t have adequate cover for business use. This includes both company car drivers, and employees who drive their own cars on business. The research suggests that many companies are not insuring their company vehicles correctly and failing to check that employees who drive their own car on business have business use included on their policy.
Some Key Facts from the research
The research also highlighted the following data on Motor Fleet claims in the UK:
- The UK Insurance sector pays out around £2.2 billion annually on motor fleet claims
- Over 792,000 claims are handled each year on Motor Fleet policies
- Drivers without adequate cover are reckoned to drive an average of 4,708 miles annually on business
- Of those drivers, 19% said they had already had an accident whilst driving on business
- Of the drivers with a previous accident, 80% thought the accident was their responsibility rather than their employer’s
Some simple actions you can take
Consider driver training for any staff that drive on business – especially those who drive a company vehicle. The cost of training can be considerably less than the cost of a large accident. Although insurance will cover many of the costs of an accident, there are many hidden costs such as vehicle down time, staff absences and management time spent dealing with claims.
- Request insurance documents from all staff that drive their own vehicles on business, to ensure they are covered for business use, and check these annually. Their documents will explain whether or not they are insured for business use.
- Ensure that you and all of your drivers are up to date with the implications of a Motoring Prosecution – see the following resources
If you need help with any aspect of your Motor Fleet Insurance, call us on 01943 876631 or contact us through the website. Talk us through your business drivers and the nature of their work, and we’ll explain the cover you need to have in place and how to check you’re fully covered.