Independent Contractors and Company Vehicles

One of the biggest shifts in the workplace has been the rise in the number of independent contractors. Also called 1099 workers because of their tax status, these are self employed workers who subcontract jobs for companies. Their role is different from that of an employee and it raises a number of questions about what they can and can’t do.

Company Vehicles

One of the most common questions is “can subcontractors drive company vehicles“. Simply put, the answer is yes. However there are certain risks in allowing a subcontractor to use a company car.

A subcontractor is not covered under your general insurance policy the way an employee is. Before allowing an independent contractor to use a company vehicle, ask for proof of insurance to protect your property in the case of an accident.

The safest way to go is to purchase comprehensive independent contractor liability insurance. Should a subcontractor be involved in an accident that leads to a lawsuit, this type of policy will protect you.

Another. lesser but still problematic situation to consider, is that allowing a subcontractor to use company property blurs the line between employee and independent contractor. This could have a negative impact on your working relationship. It is always best to have clearly defined boundaries in business relationships.

When using independent contractors, they are allowed to drive a company vehicle, but it’s not ideal. If you allow a subcontractor to use a company car, make sure you are insured properly.