As a small business owner you have a lot of responsibilities, and as your company expands, those responsibilities will grow exponentially. One area that people always forget about is the huge impact that motoring costs can have on a business. If you’d like to know more about just three areas where you could be wasting money, or even be in danger of committing a motoring offence, then read on…
- Securing business insurance
First and foremost, if you drive a lot from place to place for your company, you may not be aware that a simple personal driver insurance policy does not offer you the coverage that you need. For such jobs as this, you’ll need a more comprehensive business insurance policy.
These are more expensive as they calculate a higher risk for the person being insured for a number of reasons including: the fact you will be travelling on unfamiliar roads regularly, the fact you will be on the roads for longer journeys more frequently, and the fact you will be on the road during peak times. It is more expensive, but absolutely essential; if you have a crash and you’re found to be on a standard policy, the company could list this as fraud and refuse to pay out.
- Car leasing for contracts
Thanks to the internet, the likelihood of never having to meet your clients is relatively high. Much of the negotiations these days are done via email, Skype conferencing and so on. This is fantastic news for start-ups who have all the knowledge and skills but not the high-tech glossy offices of blue-chip companies. However, on those occasions where a face-to-face meeting is needed, the ability to hire a luxury car is a godsend.
The concept of car leasing will become very familiar to you in these situations, so be sure to always allocate part of your budget for these meetings, and search around for the best deals with the best reviews.
- Staff responsibilities
Finally, when you think about staff responsibilities, the allocation of company cars is an area of concern that should be top of your list. Depending on your industry, you may find that as your customer base spreads, you need to give your sales team a little more freedom to go and build relationships with clients, or secure potential ones. It is absolutely vital if you do this that the individual driving the vehicle is fully aware of the agreement included with it, particularly where insurance is concerned.
Whether it rests with your company to set up a business insurance policy or not, make it absolutely clear, and get the employee to sign a contract agreeing to those terms. Should the driver be caught without insurance and there is no evidence to suggest that you had explained they were responsible for this, you could be liable for prosecution for the motoring offence.
Do you have any more motoring tips for small business owners?