Reduce Your Farm’s Liability with a Vehicle Policy

Outline policies and procedures to promote safety

Depending on the year, accidents including vehicles always top the list of the most common commercial agribusiness claims. In 2019, they were the third leading cause, according to Nationwide.

For your family and team, farm-owned vehicles can be a powerful benefit. But they are also a serious responsibility.

“Without written vehicle agreements, you are telling employees you have no expectations for how they treat or use the company’s asset,” explains Chris Barron, a national financial consultant for Ag View Solutions and Iowa farmer.

Barron suggests creating a farm vehicle policy with rules such as the one below to prevent misunderstandings, insurance premium increases or an expensive lawsuit.

Vehicle Policy Guidelines

1. Only company employees may drive vehicles owned by the farm.
2. Employees agree to safe operation of company-owned vehicles at all times. They must obey all traffic laws, wear seat belts and require passengers to wear seat belts.
3. In the event of an accident or loss during personal use, employees agree to pay insurance deductibles, any out-of- pocket costs or both types of expenses.
4. The vehicle must stay within a 30-mile radius (or whatever you specify) of the business whenever it is in use for personal reasons.
5. Employees may request to make trips beyond the permitted radius by documenting details and exact mileage.
6. Towing for personal use is prohibited. Examples include trailers, boats, campers, equipment and anything else that can be hooked to the hitch of the vehicle.
7. There is zero tolerance for alcohol or drug use and possession in any company vehicle.
8. Texting and cellphone use are prohibited while driving. Some companies allow for headsets.
9. If an accident occurs, employees must notify authorities immediately and the company owners within a safe time frame, preferably within an hour. A company accident report should be filed immediately after the incident.
10. Any violation of the above protocol can result in immediate suspension or termination.