Employees who get into accidents while driving company vehicles often rely on their employer to cover their damages. However, company car accidents can have several variables, and there are always exceptions depending on the circumstances. If you drive as part of your job, this blog will help with everything you should consider.
Who Pays for Company Vehicle Accident Damage?
The person responsible for covering damages depends on what the company vehicle was used for at the time of the accident and who caused it. Your employer will likely be responsible if you cause an accident in a company vehicle while working. In that case, the company’s commercial insurance would cover the damages of everyone involved. Coverage may also vary depending on why you caused the accident.
However, if you cause an accident while using a company vehicle for personal reasons, you can be held personally liable. If you are liable, you must claim from your private insurance to cover your and the other driver’s damages. If you are responsible, you may even have to reimburse your employer for vehicle repair or replacement costs.
On the other hand, if another driver causes an accident while you’re driving a company vehicle for work reasons, your employer will claim from that driver’s insurance to cover vehicle damage and your personal damages. If another driver causes an accident while using a company vehicle for personal reasons, you and your employer will file separate claims from the other driver’s insurance.
What Is Vicarious Liability in a Company Car Accident?
Because there are so many variables when an employee drives a company vehicle, a legal concept exists that holds employers accountable for their employee’s actions. This concept is called Vicarious Liability. This liability can protect an employee if they are in an accident in their private vehicle while fulfilling work-related tasks.
The key distinction is whether the employee acted within their employment scope. Suppose you are fully or partially responsible for an accident while performing work tasks, and you and the other driver are injured. In that case, your employer may be responsible for covering the medical expenses of all parties. Examples of tasks that may fall under your scope of employment include:
- Driving to meetings
- Making deliveries
- Performing off-site jobs
- Transporting passengers for work
How Does Liability Differ for Contractors and Employees?
The rules for contractors and employees are different and can affect liability. An independent contractor using their personal vehicle isn’t protected by vicarious liability. Even if they act within their scope of work, they will not be treated as permanent employees. However, if a contractor driving a company vehicle is injured by another driver or due to employer negligence, the employer may be liable.
When Is an Employer Liable for a Vehicle Accident?
Employers have a duty of care to ensure that their employees are safe. When company vehicles are involved, this duty must encompass the appropriate training and equipment to perform their tasks. Employer negligence applies when an employee is injured because their company failed to perform their duty, for example:
- Failing to provide training on company vehicle operation
- Allowing employees to drive while intoxicated or sleep-deprived
- Requiring employees to drive during dangerous weather conditions
- Neglecting vehicle maintenance and repair
If an employee is injured due to their employer’s negligence, they can file a claim against the company seeking compensation for their damages. In these situations, you can claim for medical expenses, lost earning potential, pain and suffering, etc.
Why Does Personal Insurance Matter for Work Driving?
It is essential for employees using their personal vehicles for business-related tasks to ensure that their insurance provides cover for potential accidents. Most standard auto insurance policies exclude work-related incidents, which can leave you covering damages out-of-pocket.
If you are responsible for an accident, your employer’s insurance will likely only cover damage to the other driver’s vehicle. If you are injured in the accident, you must claim from your own insurance, which may be difficult if you are not covered for work-related injuries.
What Insurance Coverage Do Employees Need for Work Driving?
Understanding your coverage when you must drive for your job is vital. Accidents are always possible, so being prepared can prevent confusion and hefty out-of-pocket expenses. Always check your contract to ensure your employer has auto insurance that protects you if you are injured while driving a company vehicle.
You must also speak to your insurance provider and determine whether you are covered if you cause an accident while driving a company vehicle. Also, ensure that your auto insurance covers work-related damages if you are required to use your personal vehicle.
How Can a Lawyer Help After a Company Vehicle Accident?
Accidents involving a company vehicle can be complex, making it difficult to determine who is liable. Employees need to make sure that they are not being taken advantage of and are protected when on the road.
If you’ve been involved in an accident while driving for work, contact HHJ Trial Attorneys. Our expert legal professionals can help you file claims, negotiate with insurers, and manage all the legal nuances of company vehicle accidents.
