Ultimately you, the company, are responsible for the actions of your employee. Your insurers will have to meet the costs. But who pays the excess?
Before we look at the excess there may be questions about the driver, were they authorized, did they have a valid driving licence; had insurers been informed of any convictions, etc.
All these matters and more need to be covered in your vehicle policy. Here are some questions that need to be answered in your policy:
- Who is entitled to drive? How is permission provided?
- How do you check the licences of all those entitled to drive?
- What information do you need to pass on to your insurers?
- For what purposes can, and particularly for what purposes can it not be used?
- What arrangements exists for personal mileage, payment, and for lease restrictions?
- Who pays for the fuel, and how, and for the wrong fuel!
- Do you want to track the vehicle?
- How are maintenance and repairs arranged?
- Are you entitled to take disciplinary action if the driver is at fault?
- This list is not exhaustive but, of course: who pays the excess and can you deduct it from pay?