Posted By Sam Bracken
Greetings to all.
I work for a District Council and we are setting up a Cycle To Work scheme. I have received conflicting advice regarding insuring the cycles as the Council initially own the bikes, (the employee should insure?/the employer should insure?)
There is also the question of liability, e.g. is the employee/cyclist covered in the event of an accident whilst cycling to work?
It seemed like a simple scheme to set up but it is running into the sand due to the legal implications.
Can anyone assist?

Posted By holmezy
Sam,

I sorted a similar scheme last year and had the same "queries" asked of it. The general concensus was as follows;
1) the cycle is the employees responsibility and should be covered under normal house contents insurance (assuming its kept in a secure place etc)
2) Even though the Company technically own the bike, they are in effect providing a loan to the employee which the employee pays back via salary deductions. Company therefore not liable under PUWER etc. (Unless the Company provides cycles for use at work, then its different. We don't so not a problem. Maintenance and up keep is also the employees responsibility, as is remaining legal on the road, ie lights etc.
3)Employee is using the cycle to get to and from work so not an issue under H+S.
4)Any insurance cover or liability is the responsibility of the employee.

I'm sure if you ask your insurers to provide cover for employees cycling to work, they will jump at the chance to charge you a lot of money!!

Holmezy