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Business Non-Fleet Agreement

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BUSINESS NON-FLEET AGREEMENT

This Business Non-Fleet Agreement ("Agreement") is entered into as of by and between:

RECITALS

WHEREAS, the Company requires certain non-fleet related business services consisting of transportation coordination, scheduling, and related administrative services (the "Services"); and

WHEREAS, the Service Provider represents that it has the qualifications, personnel, and ability to perform the Services in accordance with the terms of this Agreement; and

WHEREAS, the parties desire to set forth their respective rights and obligations governing the provision of such Services on the terms set out below.

SCOPE OF WORK

The Service Provider shall perform the Services described below in a professional and workmanlike manner consistent with industry standards. The Services shall include, without limitation, the following:

Additional tasks may be added by mutual written agreement of the parties. Any material change to the Scope of Work, including changes to timing or deliverables, shall require a written amendment signed by both parties.

PAYMENT TERMS

Compensation for the Services shall be as follows:

Service Provider shall submit invoices to the Company. Payment shall be due within days from receipt of a proper invoice.

Any amounts unpaid after the due date shall accrue interest at or the maximum rate permitted by applicable law, whichever is less. The Company shall also be responsible for reasonable collection costs and attorneys' fees incurred by the Service Provider resulting from late payment.

TERM AND TERMINATION

This Agreement commences on and shall continue until unless earlier terminated as provided herein.

Either party may terminate this Agreement for convenience upon days' prior written notice to the other party. Either party may terminate immediately for cause upon written notice if the other party materially breaches this Agreement and fails to cure such breach within 15 days after receipt of written notice specifying the breach.

Upon termination, the Service Provider shall deliver all completed work, invoices for Services rendered up to the effective termination date, and any materials reasonably requested by the Company. The Company shall pay the Service Provider for all undisputed Services performed through the effective date of termination.

CONFIDENTIALITY

The parties acknowledge that in the performance of this Agreement they may each have access to or receive certain proprietary or confidential information ("Confidential Information"). Each party agrees to hold the other's Confidential Information in strict confidence, to use such information solely for the performance of this Agreement, and not to disclose such information to any third party except to employees, contractors, or advisers who have a need to know and who are bound by confidentiality obligations at least as protective as those set forth herein.

Confidential Information does not include information that is or becomes publicly available other than through a breach of this Agreement, already known to the receiving party at the time of disclosure, independently developed by the receiving party without use of the disclosing party's Confidential Information, or rightfully obtained from a third party without restriction.

INDEMNIFICATION AND INSURANCE

The Service Provider shall indemnify, defend, and hold harmless the Company and its officers, directors, employees, and agents from and against any and all losses, damages, liabilities, claims, or expenses (including reasonable attorneys' fees) arising out of or resulting from the Service Provider's negligent acts, willful misconduct, or breach of this Agreement. The parties shall maintain adequate insurance coverage to cover their respective obligations under this Agreement and shall provide proof of such insurance upon reasonable request.

LIMITATION OF LIABILITY

Except for liability arising from gross negligence, willful misconduct, or breaches of confidentiality or indemnification obligations, neither party shall be liable to the other for consequential, incidental, special, or punitive damages. The aggregate liability of each party for any claim arising out of this Agreement shall not exceed the total compensation paid or payable to the Service Provider under this Agreement during the twelve (12) month period preceding the event giving rise to the claim.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to its conflicts of law rules. Any disputes arising under or in connection with this Agreement shall be resolved in the state or federal courts located within such state.

ENTIRE AGREEMENT

This Agreement, including any exhibits or attachments expressly incorporated herein, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, negotiations, and discussions, whether oral or written. Any amendment or modification to this Agreement must be in writing and signed by authorized representatives of both parties.

NOTICES

All notices required or permitted under this Agreement shall be in writing and shall be deemed delivered when delivered in person, sent by nationally recognized overnight courier, or three business days after being deposited in the United States mail, postage prepaid, addressed to the parties at the addresses set forth above or to such other address as either party may designate by notice in accordance with this section.

REPRESENTATIONS AND WARRANTIES

Each party represents and warrants that it has the full corporate power and authority to enter into this Agreement and to perform its obligations hereunder, that this Agreement constitutes a legal, valid, and binding obligation of such party, and that the execution and performance of this Agreement will not violate any law, regulation, or agreement by which it is bound.

CONTACTS FOR NOTICES AND ADMINISTRATION

MISCELLANEOUS

If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall continue in full force and effect. The parties are independent contractors and nothing in this Agreement shall be construed to create a partnership, joint venture, agency, or employment relationship between the parties.

Neither party may assign this Agreement without the prior written consent of the other, except that either party may assign this Agreement to a successor by way of merger, consolidation, or sale of substantially all of its assets provided that such successor assumes all obligations hereunder.

Company Representative:

By:

Date:

Service Provider Representative:

By:

Date:

Enter text✕

What the Business Non-Fleet Agreement Covers

A Business Non-Fleet Agreement is a contract used when a business acquires, leases, or authorizes use of one or a small number of vehicles outside a formal fleet program. The document defines parties, vehicle identification (VIN), permitted drivers, permitted use, maintenance responsibilities, insurance requirements, payment or consideration, indemnities, and signature blocks. It clarifies operational limits and assigns liability and regulatory responsibilities for a business vehicle not managed under a corporate fleet policy, helping reduce disputes and support compliance with tax, insurance, and state motor vehicle rules.

Why this Agreement Matters for Small-Scale Business Vehicles

A tailored Business Non-Fleet Agreement documents rights and responsibilities for a single or limited number of business vehicles, reducing ambiguity about personal versus business use, insurance coverage, and tax treatment.

Why this Agreement Matters for Small-Scale Business Vehicles

Who Typically Completes a Business Non-Fleet Agreement

The agreement is commonly used by businesses and individuals who operate one or a few vehicles under business ownership but do not maintain a centralized fleet management program.

  • Small business owners documenting vehicle use for tax and insurance clarity.
  • Independent contractors or sole proprietors assigning vehicle use to employees.
  • Dealerships or lessors creating single-vehicle non-fleet sale or lease paperwork.

Use this agreement when assigning a vehicle to an employee, contractor, or partner, or when documenting a single-vehicle lease or purchase for business use.

Typical Signatories and Their Roles

Business Representative

A company officer or authorized manager who signs on behalf of the business; must have authority to bind the entity and confirm insurance and maintenance obligations.

Vehicle User

An employee, contractor, or lessee who accepts responsibility for permitted use and agrees to reporting, care, and any mileage or reimbursement terms defined in the agreement.

Security and Compliance Information to Record

Encryption: AES-256 at rest
Transport Security: TLS 1.2/1.3
Audit Trail: Timestamped signing logs
HIPAA: BAA required for PHI
Authentication: Multi-factor options
Certifications: SOC 2 Type II, ISO 27001

Key Risks and Potential Penalties

Invalid Signature: Contract may be unenforceable
Missing Insurance: Financial liability on owner
Tax Exposure: Incorrect business-use reporting
Regulatory Fines: State DMV or insurance penalties
Data Breach: Privacy and compliance fines
Warranty Claims: Void warranty for misuse

Common Preparation Mistakes to Avoid

  • Using shorthand names or nicknames for parties instead of their full legal entity names, which can invalidate signatures or cause payment disputes.
  • Failing to record the vehicle VIN and registration details precisely, causing confusion in insurance claims or transfer of title.
  • Omitting insurance policy numbers, coverage limits, or effective dates, leaving gaps in coverage during an incident.
  • Not specifying permitted drivers or geographic limits, which can create liability disputes after accidents or misuse.

Step-by-Step: Completing a Business Non-Fleet Agreement

Follow these steps to complete the agreement accurately and ensure enforceability across tax, insurance, and operational contexts.

  • 01
    Identify Parties: Enter full legal names and contact details.
  • 02
    Describe Vehicle: Record VIN, make, model, year, and registration.
  • 03
    Set Use Terms: Define permitted drivers, usage, and mileage rules.
  • 04
    Sign and Date: All signatories must sign and date the document.

How to Route and Deliver the Completed Agreement

Decide the delivery path before signing so copies reach insurance, payroll, finance, and legal teams without delay.

  • Primary Filing: Retain executed original with corporate records.
  • Insurance: Send signed copy to insurer for policy updates.
  • Payroll/Tax: Provide copy for tax and reimbursement tracking.
  • Driver: Give a signed copy to the assigned driver.

Essential Clauses for a Professional Agreement

Include clear, enforceable clauses that define responsibility, limit ambiguity, and support compliance with insurance and tax rules.

Parties

Full legal names, entity type, business addresses, and authorized signatory names to establish contractual capacity and attribution.

Vehicle Details

VIN, make, model, year, license plate, current odometer reading, and any included equipment or modifications.

Permitted Use

Geographic limits, business-only use, prohibited uses, personal use allowances, and driver eligibility requirements.

Insurance Requirements

Required policy types, minimum liability limits, policy numbers, effective dates, and obligations to notify insurer of changes.

Maintenance & Repairs

Who is responsible for routine maintenance, repair approval limits, and documentation of service history and costs.

Liability & Indemnity

Allocation of responsibility for accidents, third-party claims, and any indemnity obligations between parties.

Digital Workflow Settings for eCompletion

Recommended workflow settings ensure consistent routing, authentication, and record retention when using an eSignature platform.

Field Configuration
Authentication Email link + SMS code for signer verification
Routing Order Sequential routing: business then driver then insurer
Notifications Auto-reminders at 3, 7, and 14 days
Retention Store signed PDF and audit trail for retention period

Digital Signing and Integration Considerations

Choose a platform that supports secure storage, audit trails, and the integrations you need for insurance and accounting workflows.

  • Integrations: Salesforce, NetSuite, Google Workspace
  • Formats: PDF, DOCX, HTML supported
  • Security: AES-256 encryption at rest

Timelines and Deadlines to Note

Track timing for execution, insurance updates, tax reporting, and any state-specific filing or notice requirements tied to the agreement.

Execution Deadline:

Sign before vehicle is used for business to ensure coverage and enforceability.

Insurance Notice:

Notify insurer within contract-stated days of assignment or risk change.

Tax Reporting:

Provide supporting documentation to payroll or tax teams by tax-year close.

Document Retention:

Preserve signed agreements and audit trails per retention schedule.

Address Changes:

Update party contact and registration details within 30 days of change.

eSignature Pricing and Feature Comparison for This Agreement

Compare common vendor pricing and feature criteria relevant to signing, notarization, and HIPAA or audit-trail requirements; signNow is shown first per table conventions.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial, no card Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes (Business Premium) Yes Yes Yes Yes
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Frequently Asked Questions and Troubleshooting

Answers to common questions about validity, eSigning, notarization, and correcting executed Business Non-Fleet Agreements.


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