Grey Fleet Management
This blog is developed from NIG Risk Assist with a purpose to inform you of the risks and the importance of setting up a driving for work policy. Use this blog to educate senior members of staff and review your risk management and health & safety policies in your business.
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Any vehicles utilised for business trips but which do not belong to the company are referred to as “grey fleet.” This might apply to a car that was bought through an employee ownership programme, rented privately, or privately owned by an employee.
These vehicles are deemed to be a part of the “grey fleet” and as such are the employer’s responsibility when they are used for work purposes, frequently in exchange for a monetary allowance or fuel expense.
Grey Fleet Management
The grey fleet includes everyone who uses their own vehicles for work-related purposes, even if they are only infrequently utilised for work-related purposes, like getting the office sandwiches. Therefore, employers must ensure that every employee who drives for the firm complies with corporate standards and is protected by the company’s driving for work policy.
Many employers provide workers the choice to forgo using a company-provided vehicle in favour of a monetary allowance or fuel expenditures. These personnel may essentially be operating outside of the established insurance and servicing policies when they use their own vehicles for company purposes, which can represent a larger risk. From a risk standpoint, an organisation confronts exactly the same difficulties as if the person was driving a work supplied vehicle.
When these drivers use their own vehicles for work-related purposes, they nonetheless pose a significant danger to the business even if they may not be covered by the company’s established insurance and maintenance policies. The employer is responsible for making sure the employee has a current driver’s licence, the proper insurance for business use, and a current MOT certificate for their car (if appropriate).
You should have a system in place that logs this data and can then be used to notify the line managers and specific drivers when each of these things is up for renewal.
The risks
Fleet managers have a challenging set of challenges to oversee the safety of their fleet because grey fleet cars are not company-owned. For starters, employees who drive their own cars may not be protected for business trips by the established insurance and maintenance coverage.
In terms of mileage, accident management, and routine vehicle maintenance, grey fleet drivers can be challenging to control.
You must also take into account if the car is appropriate for use at work. This could include the vehicle’s age and condition, as well as whether or not it has ABS, ESP, air conditioning, and whether or not it is appropriate for the company’s travel needs.
Therefore, it is crucial that businesses make sure they have the right checks in place to fulfil their legal obligations.
Three crucial steps for controlling travel for grey fleet.
1. Set the policy
Create a driving for work policy that specifies when you may use your personal vehicle.
The policy should include statements about the car, the driver, and the trip in accordance with health and safety laws and the HSE’s Driving at Work guidance.
2. Use the policy to tackle key issues
The driving for work policy should address pertinent matters relating to fiscal and environmental obligations, as well as health and safety.
3. Implement and review the policy
The policy needs to be implemented, managed and reviewed.
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Talbot Jones Ltd is a family-run chartered insurance heritage specialist in the Third Sector and Professional risks. Get in touch for free insurance advice, review or quotation.
