23 March 2026
Reduce Grey Fleet liability – protect your business
In 2024, it was estimated that 24% of all serious car incidents involved work related driving, and accounted for 29% of all road deaths. In fact, up to a third of all UK road traffic accidents involved someone driving for work. These figures are worrying, and have potential to leave your business open to the risk of fines or prosecution.
What is Grey Fleet?
In a nutshell, Grey Fleet is a term used to describe vehicles used for work purposes that are employee-owned (i.e. not company cars).
As a business, you are responsible for ensuring your staff are driving safe and suitable vehicles when travelling for work purposes – and you’re the one liable if they aren’t. In fact, if a serious incident occurred involving one of your employees and they were found to be in an unsuitable vehicle, you could be liable for fines, or even prosecution.
Work-related driving includes any journey for work, such as attending meetings, visiting clients, or any activity where an employee claims mileage reimbursement. It does not include commuting.
Why is Grey Fleet a problem?
Employers are responsible for driving all employees driving on business. This means that, as an employer, it is your responsibility to ensure that vehicles used for work purposes are roadworthy with a valid MOT, and drivers have the appropriate license and insurance for your business needs.
This adds an administrative and potentially a financial burden to your company. If you fail to comply, you are liable for damage, injury, or even death.
How can companies manage Grey Fleet risk?
There are several ways to minimise Grey Fleet risk for your company:
Implement a Grey Fleet Policy with clear guidelines for business travel, and a readily available handbook for employees.
Regular compliance monitoring can ensure that your employees have appropriate insurance cover, licencing, and MOT certificates.
Offer a car scheme such as salary sacrifice or a company car to modernise what your employees are driving. New cars are safer, cleaner, and many schemes often include servicing and maintenance in their contracts.
Taking steps to reduce the risks
Regular vehicle and documentation checks is one way to reduce your Grey Fleet risk – however, it can be time-consuming, and therefore costly.
For a more streamlined approach, consider offering a salary sacrifice scheme to your employers. Salary Sacrifice offers tax savings to employers and employees, and gives access to brand new cars. It’s also a good option for companies looking to reduce their carbon emissions, as it helps tackle the financial burden of transitioning to EVs.
Read more about salary sacrifice.
Have a question? We’d be happy to help.
