Proforma Safety Blog

Is Your Organization at Risk Due to Its “Grey” Fleet?

Posted by proforma on April 15, 2010

Using employee-owned vehicles for company business is a growing trend, says a recent article co-authored by Aon Global Risk Consulting and Risk & Insurance® magazine. This “hidden or grey” fleet presents liability exposure to the organization, although many do not realize this to be the case. Because of increased costs, many organizations no longer offer company-owned vehicles to employees. Unfortunately, even though employee vehicles are not owned by the company, if an accident occurs, the employee’s automobile liability policy only offers the first line of coverage of $300,000 or less. If damages exceed this level, then the organization’s policy would be involved. Successful management of the risks associated with this ”hidden fleet” risk involves identifying routine drivers and establishing safety processes similar to those for company vehicle operators. Setting mandatory road safety standards is the first step, and may include requirements to drive rested and alert, wear mobile phones or other electronic devices, attend accredited defensive driving courses, employ vehicle monitoring and data recording systems and keep vehicles well maintained.  The full article, “World Class Fleet Safety,” is available on the Risk and Insurance website.  A white paper “World Class Fleet Safety Process,” is available at http://www.aon.com.