Grey Fleet Risk Management
Grey fleet describes cars used for company business that are not traditional company cars. These can be cars owned by your employees, vehicles purchased through company purchase schemes or otherwise acquired. These vehicles present unique challenges to any fleet manager and grey fleet risk management can be a major headache for any fleet manager tasked with it. To make it easier we’ve outlined some of the key risks you’ll face with a grey fleet so you can tackle them head on.
Are your Employees Driving Death Traps?
The simple answer to this question for many grey fleet mangers would be ‘we don’t know’. Unfortunately, in the eyes of the law this is not an acceptable answer and if a vehicle is being used for company business you need to be as thorough in asking questions and providing services to drivers as if you owned the vehicle yourself. This is what can make grey fleet risk management so difficult for employers. You need to make sure your employees are fit to drive; that their tyre pressure is safe; that the vehicle has a full MOT; that it has proper insurance and much, much more. In many cases any savings you make from running a grey fleet are quickly outweighed by the additional administrative headache they create.
Things you Must Know
The factors outlined above are just the beginning. Here’s a selection of the things you need to know in order to keep your grey fleet safe and legal. You can find even more factors to consider in this article.
- Does the driver have the correct type of licence?
- Is maintenance being performed to schedule?
- Is the tyre pressure correct?
- Does the car have a valid MOT?
- Does the car’s insurance allow it to be used for business purposes?
- Is the driver fit to drive the car?
- Are the tyres above the legal tread limit?
Is there an Alternative?
If all of this is making your head spin a little then it might be worth considering grey fleet alternatives. Company car fleets are no longer the preserve of large multinational businesses. Some of our customers have 3 cars or fewer and still benefit from all the leasing advantages enjoyed by large companies. If you’d like advice on how to remove your grey fleet risk management headache, get in touch with our team who’ll be happy to help.