Working with grey fleet vehicles and your responsibility as an employer

According to the British Vehicle Rental and Leasing Association (BVRLA), a grey fleet vehicle is ‘owned and driven by an employee for business purposes. The employee is reimbursed on a pence per mile basis for using their private vehicle on business journeys. Vehicles used by employees under cash allowance schemes are considered grey fleet too’.

Grey fleet Explained

The number of companies relying solely on their vehicles to provide mobility for their employees has been declining for several years, whilst the number of employees using their own vehicles for business purposes has increased significantly. It’s those employee-owned vehicles used for business purposes that are termed grey fleet vehicles.

Your legal responsibility

Though grey fleet vehicles are not company-owned or leased, an employer is still legally responsible for the use of such vehicles whilst out on company business. More specifically:

• Employers need to apply Health & Safety Executive (HSE) work-related road safety guidance to both their own fleet and their grey fleet, see https://www.hse.gov.uk/roadsafety/
• Employers must fulfil their obligations under the police-administered Road Traffic Act (RTA) and Road Vehicles (Construction and Use) regulations
• Employers also have duties imposed on them by the Driver and Vehicles Standards Agency (DVSA)

Key Management Responsibilities

To meet that legal responsibility, employers need to put robust processes and procedures in place. Below are some key management responsibilities that you should be looking out for when dealing with grey fleet vehicles.

• A nominated person has specific responsibility for grey fleet management
• Drivers are formally authorised to drive their own vehicles on company business
• The grey fleet vehicle is correctly insured for the type of business use to which it is put
• The vehicle is roadworthy - particularly given that the average age of a grey vehicle tends to be higher than a company-owned or leased vehicle
• The driver holds the correct driving licence and any convictions are disclosed
• The driver is fit to drive and meets legal eye-sight requirements
• Drivers are fully aware of the company’s stance towards drug and alcohol use and abuse
• Every driver is issued with an appropriate ‘driving for work’ handbook
• Drivers are competent from a driving style, behaviour and road risk awareness perspective
• Drivers identified as being potentially at risk receive appropriate training
• Drivers that may have been off the road for quite some time, are equipped to get safely back behind the wheel

The importance of having the correct procedures in place

We understand that putting in place appropriate processes and procedures such as those outlined above can be a time-consuming process, but we would advise that you do not fall short of meeting your obligations.

Whilst you may get away with not taking these obligations seriously, if in the unfortunate event of a serious or fatal accident, no stone would be left unturned and the process of investigation and potential prosecution could prove not only time consuming, but extremely stressful, particularly for those in senior positions. The consequences of conviction could be particularly painful, not just on the individuals involved, but also for the company itself.

Road Safety Solutions

The good news is that grey fleet management solutions are available for businesses who are looking for a ready-made, easy to use answer to the challenge of meeting obligations under legislation and relevant best practice.

Other solutions to assist your employees safe on the road, include driver profiling software that enables each driver to personally assess their road safety awareness. Assessments can dynamically offer drivers on-line modules that should help address specific development needs identified during the evaluation. In-car training is also available.

Towergate Insurance – Insurance Partners of Care England

As a partner of Care England, we can offer members access to Towergate Safedrive, which can help take the pain out of managing your grey fleet exposure. If you would like to find out more, you can speak to Richard Barnes, who will be able to find a solution to suit your organisation. Call 07768 314 298 or email richard.barnes@towergate.co.uk

About the author

Richard Barnes has worked as an insurance broker for over 30 years. Richard spent five years working as a specialist construction broker in Sydney Australia where he gained the Qualified Professional Insurance Broker Qualification.

Since his return to the UK in 2008 he has worked for Towergate exclusively supporting social care providers and has been awarded the Cert. CII qualification. Richard is also part of Towergate’s Cyber steering committee supporting clients with this emerging risk.

Consistent with our policy when giving comment and advice on a non-specific basis, we cannot assume legal responsibility for the accuracy of any particular statement. In the case of specific problems we recommend that professional advice be sought.