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A Good Time to Review Your Company’s Driving Policy

April 22, 2025 / By Barbara Weltman

A Good Time to Review Your Company Driving PolicyApril is National Distracted Driving Awareness Month. It’s a good time to review your company’s driving policy to increase the safety of your staff and others, as well as to reduce your insurance costs and liability exposure. For example, driving-related injuries make up a quarter of all workers’ compensation claims and half of workers’ compensation premiums (although not all claims relate to distracted driving). Your policy should cover all business-related driving, whether employees are driving company vehicles or using their own for company business. (The following is adapted in part from a previous blog.)

Basic rules for safe driving

Because the company may be financially liable for accidents, whether the vehicle is owned or leased by the company or belongs to the employee driving on company business, be sure to have a good vehicle and drivers policy. Reiterate to employees what is common sense:

  • Obey traffic laws, making allowances for weather and traffic conditions
  • Wear seatbelts
  • Do not drive when impaired by medication, alcohol, or drugs
  • Report any mechanical difficulties in a company vehicle (e.g., low tire pressure)
  • Maintain a valid driver’s license
  • Follow up on vehicle recalls

Distracted driving

The NHTSA reported that more than 3,300 lives were lost in the U.S. in 2022 due to distracted driving, and EndDD.org thinks the number is much higher. The National Safety Council reported about 1.6 million crashes in 2023 were due to distracted driving. The 3 main types of distracted driving are:

  • Visual: taking your eyes off the road
  • Manual: taking your hands off the wheel
  • Cognitive: taking your mind off driving

Any of these distractions can result from texting, talking on a cell phone, eating, and using GPS. OSHA says what  employers should prohibit any work policy or practice that requires or encourages workers to text while driving. Did you know that “reaction time is delayed for a driver talking on a cell phone as much as it is for a driver who is legally drunk”?

To repeat, be sure your driving policy bans employees from using their cell phones while driving. It’s the law! According to the National Conference of State Legislators (NCSL), almost all states ban texting while driving and the majority bank hand-held devices. There’s a map where you can check the laws in your state. Should employees violate the law and be involved in an accident, you could be exposed to considerable liability; your insurer may not pay.

Drowsy driving

In addition to distracted driving, drowsy driving is another problem that employers should be aware of. (There’s a Drowsy Driving Prevention Week in November.) About 2.1% of fatal accidents are due to drivers being drowsy. Employees may become drowsy because they simply don’t get enough sleep. Shift workers, commercial drivers, and business travelers are particularly vulnerable due to long, odd hours.

Simply asking employees if they’re tired before driving on company business isn’t a solution. A better idea is to educate them about the signs of drowsy driving so they can find solutions (e.g., find other means of transportation; pull over for a nap). The common warning signs include:

  • Frequent yawning or blinking
  • Difficulty remembering the last few miles of driving
  • Missing an exit
  • Drifting into other lanes
  • Hitting a rumble strip on the side of the road

The National Highway Transportation Safety Administration (NHTSA) has tips to avoid drowsy driving.

Autonomous and ADAS vehicles

There’s been a lot of attention focused on the jobs that could be lost because of self-driving vehicles. But there also needs to be focus on using self-driving vehicles—also referred to as autonomous vehicles—in a business. There are autonomous taxis on the streets of LA, San Francisco, and Phoenix. But according to Brookings, “Despite improvements in self-driving technology, the best conclusion for now seems to be that the safety advantages of self-driving cars are aspirational but have not been proven.”

While not fully autonomous, many new vehicles today contain numerous self-driving-like features. They are called Advanced Driver-Assistance Systems (ADASs). They use sensors and cameras to enhance safety and ease of driving. They are supposed to alert drivers to potential hazards, warn about lane drifting, and provide emergency braking. Some offer hands-free parallel parking. These technical assists should not take the place of driver vigilance. Legally, despite an ADAS, the driver remains responsible for vehicle incidents. The company’s driving policy should include a requirement that employees understand and know how to operate a vehicle with an ADAS.

Communicating your driving policy

Make sure employees understand your driving policy. You can print it out and have each employee sign it. Also be sure they understand the consequences for violating the policy. This can include disciplinary action up to and including termination.

Final thought

You can draft your own driving policy or use a driving policy template which can be adapted for your needs. A couple of free templates (there are lots more):

  • Driving for work
  • Enterprise

To find more information related to a company driving policy, see this list of blogs here.

Tags company driving policy distracted driving driver safety driving on company business insurance coverage

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