Grey Fleet Management
Managing your Employee Private Cars – Grey Fleet
Grey Fleet management is one of the biggest risks for businesses. Many, including some of the biggest companies, do not recognise the risk or understand that the solution is so readily available.
Companies protect their assets by buying insurance, why not protect the personal liberty of Directors?
What is the Grey Fleet?
Any vehicle that is used on company business but is not owned, hired or leased by the company. This includes employees who have opted for cash-for-car schemes, salary sacrifice drivers and employees using their own vehicle on company business.
There are an estimated 14 million Grey Fleet vehicles compared to just under 1 million company vehicles in 2019.
The average age of a Grey Fleet vehicle is 8 years compared to 2 years for company vehicles.
Why are Employee Private Cars (Grey Fleet) such a significant risk to a company?
The most recent survey of over 250 Directors and 1,000 drivers showed that:
- 60% of Directors had no idea how big their Grey Fleet was?
- 53% believed that the company ( and Directors) were not responsible for the Grey Fleet
- 33% of drivers admitted they had no business use Insurance cover ie They are driving illegally and uninsured
The CPS is dealing with numerous cases involving serious accidents and fatalities involving business drivers and it will be the Directors who will be facing any potential Corporate Manslaughter charges.
What are the Directors’ responsibilities?
Exactly the same as their responsibilities to company drivers and vehicles. The procedures for ensuring compliance for Duty of Care can be even more stringent for Grey Fleet.
What is Duty of Care?
This covers the Employer’s responsibilities as laid down by Health & Safety legislation and the various Road Traffic Acts and regulations, to their own Employees and the general public.
How do I know if my company is compliant?
To successfully and legally manage your Grey Fleet, there are a number of criteria which must be met.
Firstly, you need to understand where your company is not compliant
Secondly, you need to ensure procedures are in place to protect your drivers, the company, the Directors and the public.
How do I do this?
Having the necessary expertise to review your compliance is not easy. If you have the personnel skills already in the company, why have they not done this review already?
Have an independent review carried out. This will give you the answers that are objective and implementation of any new procedures required will give total ‘peace of mind’ to the directors and executive of any organisation.