Dewitt, NY – September 25, 2009: Due to the difficulty of attracting and retaining talented employees, many companies are providing company cars to corporate officers, managers and top sales executives as a perk.
While a company car might be an enticing benefit, many businesses are unaware of the 24-hour exposure a company car creates.
Recent court rulings have sent a clear precedent that there is no distinction between “business” and “non-business” use when employees are driving company-owned vehicles.
Liability is assumed by the employer regardless of any agreements or signed documents between an employee and employer. In addition, a business is likely to be held liable when an employee or employee's family member has an accident during personal usage.
In the current issue of Welding & Gases Today, the journal of the Gases and Welding Distributors Association (GAWDA), Tony Hopkins, CPCU, a sales executive with The Horton Group—a company that provides general business insurance solutions for companies with complex needs and limited resources—suggests that companies consider implementing a vehicle reimbursement system in lieu of a company car program.
“There are generally three options for handling vehicles driven by your employees: offer company-owned or leased vehicles, car allowances, or mileage reimbursement,” Hopkins writes.
Read Hopkins’ expert advice on how these options work and which one may be the best for your company in “How A Small Perk Can Cause Big Problems” at Welding & Gases Today Online.
For more information, contact Jeffrey Charboneau, editor of Welding & Gases Today, at editor@weldingandgasestoday.org or 315-445-2347.
About GAWDA
Founded in 1945, the Gases and Welding Distributors Association (GAWDA) is the premier source for manufacturing knowledge, education and networking. Through its member journals (www.welding andgasestoday.org), e-magazines, newsletters and industry wiki (www.gawdawiki.org), GAWDA connects suppliers of gases and manufacturers of related equipment as well as manufacturers of welding equipment and distribution leaders, for the purpose of safely delivering optimal solutions to the users of those products. GAWDA publications are the industry’s voice for all matters related to the latest technology and the most up-to-date processes spanning welding equipment and products and services related to industrial, medical, specialty and cryogenic gases. A 501(c)3 organization, GAWDA members are located throughout North America.
###
