Why You Should Think Twice Before Letting Contractors Drive Cars

There is no denying that maintaining a fleet of company vehicle projects a professional and polished appearance. However, companies that utilize contractors for a majority of their labor may want to think twice before making that investment. When it comes to the question “can subcontractors drive company vehicles?” the answer isn’t always as straightforward as you might hope. Here are three reasons you might want to think twice before going that route.

Contractors Generally Supply Their Own Tools

In most situations, contractors are required to provide most of their own tools. For a role that requires driving, that would include their vehicle. Allowing contractors to regularly drive company cars could then create a situation where contractors should actually be classified as employees. Running afoul of employment law can carry hefty penalties, so research your options before assuming this liability.

Insurance May Not Cover Contractors

Fleet vehicles are generally covered under your business auto policy. However, that is designed to cover approved drivers — i.e employees. If a contractor was to be involved in an accident while driving a company vehicle, the business could find itself liable for damages and without proper coverage. Always check with your insurance provider about whether coverage extends to independent contractors.

It Could Violate Advertising Regulations

Depending on local regulations, company vehicles may need to display contractor license information. That can be difficult when independent contractors share vehicles. Signage for personal cars may be a better option.

While contractors aren’t specifically excluded from driving company cars, there are special considerations that must be taken into account before it becomes a standard policy.