Company provided vehicles, owned or leased, result in the employer assuming 100 percent liability for that vehicle 24 hours a day, 7 days a week. There is no distinction between business and non-business in the case of an accident involving liability claims. There is also no distinction of liability when the driver is not the employee of the company.

The availability of a company provided vehicle to family members living at the driver's home address, all with unknown driving history and experience, increases the liability risk factor.

An employee provided vehicle is able to reduce the risk and liability for the company since the driver owns the vehicle. A properly designed and maintained vehicle reimbursement program provides the employee with a fair and accurate vehicle reimbursement and removes the company from liability when the vehicle is driven for personal use outside of business hours.