What are the legal risks of operating a grey fleet?

Legal risks of operating a grey fleet

Non-compliance with vehicle standards

Employers must ensure that employees’ vehicles meet all legal and regulatory standards. Failure to comply can result in fines, penalties and legal action.

Inadequate insurance coverage

Employees’ personal vehicle insurance may not cover business use. Without adequate insurance, the company could fact significant financial liability in case of an accident.

Accident liability

If any employee is involved in an accident while driving for work, the business could be held liable for damages and injuries, especially if the vehicle is found to be unroadworthy.

Health and safety breaches

Employers have a duty of care to ensure the safety of their employees. If an employee’s vehicle is not properly maintained and this leads to an accident, the company could be held liable for health and safety violations.

Documentation verification issues

The business must verify that all necessary documentation, such as MOT certificates, insurance policies, and service records, is up to date. Failure to maintain accurate records can result in legal penalties and increased risk of liability.