April 2006  


GPS Helps You Avoid Serious Liability
FleetBoss GPS Solutions Can Provide Peace of Mind and Lower Insurance Costs.

If you're one of the 91% of companies* that have take-home fleet vehicles, you no doubt believe that providing your employees with a company vehicle is just an unavoidable necessity of doing business. But did you ever stop to think about the legal risks associated with having a take-home fleet? The truth is that you could be taking a very serious gamble if you don't have a GPS solution.


Negligent Entrustment
Left unchecked, drivers that engage in reckless or risky behaviors can cripple your business. If your employees get in an accident, drive while intoxicated or commit a crime in a company-provided vehicle, your business may be liable for monetary damages and more.

You may be surprised to learn that you are 100% liable for accidents or crimes committed by drivers using your vehicles. What's worse, if a crime is committed by a driver using your fleet vehicle, your insurance provider may refuse to cover any damages. The courts can go after your personal assets, including your business, personal income, savings accounts and even your home. Also, your insurance provider will likely increase your premium or non-renew your policy.

Your liability is due in part to a legal term called "negligent entrustment". Negligent entrustment involves the expectation that you, as an employer, trusted a person with the use of a potentially dangerous object--in this case, a take-home vehicle. If something terrible occurs while that person is operating your vehicle, then it is assumed that you are liable, since you should have known that person could not be trusted.

How Can You Lessen Your Liability?
One way is to mitigate your liability is to know your drivers. Check the driving records and general backgrounds of employees who operate in your fleet or even just run errands. Ignorance of an employee's poor motor vehicle record is no protection against corporate liability.

Another very effective way to lower your liability is to acquire a GPS fleet management system. With a GPS solution like those offered by FleetBoss, your business can accurately monitor your fleet vehicle drivers and significantly minimize your liability concerns. Your insurance company may also offer you lower rates if you install a GPS solution.

Contact FleetBoss to learn more.

 

*Statistic provided from the National Association of Fleet Administrators Vehicle Policies and Procedures Survey.

© 2006 FleetBoss Global Positioning Solutions, Inc. All rights reserved.