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What is a Grey Fleet? Is your company at risk?

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Posted by Karina Valenzuela on 23 Feb 2024

Any company that has mobile staff must have a way for them to get from A to B, whether it be Uber for business, a company-provided car, or a personal car that the user claims back the mileage on.

Companies need to understand their legal and insurance obligations regarding their fleet; it's worth getting professional advice in this area to ensure coverage. Driving in any city or large town during working hours, you'll see many cars driven by people doing business. Some will be company cars, but many will be grey fleet cars.

What is grey fleet?

A 'grey fleet' consists of vehicles that employees personally own but use for business travel.

Some businesses allow an allowance for a car rather than using a company car. However, if the vehicles are being used for work purposes, they still fall under the Health and Safety at Work Act 2015 guidelines that a car is a place of work; therefore, the PCBU (person conducting a business or undertaking) has a responsibility for the vehicle.

What are some key considerations?

Businesses must ensure that drivers of grey fleet vehicles are qualified to drive them and that the cars are roadworthy and legally allowed to be on the road.

  • The vehicle must be roadworthy, with a current WoF and Registration.
  • The vehicle must not be loaded in excess of its capabilities.
  • Insurance for work purposes.
  • Your company may want to consider a grey fleet management system

Other workplace obligations, such as license class, compliance with logbooks, no driving impairments, etc., are also essential to consider for your grey fleet.

The grey area of grey fleet

Consider a scenario such as a personal vehicle being used to get to an airport to catch a flight for business purposes. In this situation, it could be argued that a private vehicle is being used for business purposes. These kinds of scenarios are worth considering when implementing a grey fleet policy.

Grey fleets are a significant part of NZ business vehicles. If you are operating a grey fleet, it's crucial to verify with your insurance company whether these vehicles are adequately covered and for what purposes. This step is essential to avoid being caught off guard in a situation where your business could be held liable.

n3 has a wide range of vehicle-related Suppliers who can help keep your fleet safe and roadworthy, from tyres to batteries and fuel to vehicle servicing. Check out our Suppliers here

This article is not intended as advice but to inform readers about grey fleets.

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