If you are involved in an accident while driving a company vehicle while you are performing work duties, you might be left wondering who covers the damages that were incurred.
The company vehicle should be insured by commercial insurance, because private auto insurance doesn’t cover damages caused when a vehicle was being used for business or commercial purposes.
If you are at fault, your damages should be covered by your employer’s insurance, but if the other driver was at fault, they are liable for the damages. In some instances, both parties might be to blame, and both insurances might have to contribute toward the damages related to the crash.
Looking at the Insurance Coverage
However, if you are at fault for the accident, it could come back on you in the long run depending on the company’s insurance policy and the terms of your employment. The company’s insurance coverage is in effect just so long as the employee is acting within the scope of their work duties or employment.
Most states indicate that employers are generally responsible for their employee’s actions while the employee is acting within the scope of employment.
But, defining scope of employment can be challenging. In most states, it is accepted if the employee is performing work-related tasks while operating the vehicle, then the company and its insurance are responsible.
But, if the employee is operating the vehicle for personal business or on his own time, the employee is liable. If the employee is commuting to and from work, or if the employee is running personal errands, he or she is held liable.
Factors That Affect Liability
There are several factors that might affect liability for a crash involving a company vehicle.
The company might have a contract or a car policy that makes it liable for damages incurred in an accident or that excludes it from liability in such situations. The location of the accident can also be a determining factor, as laws vary from one state to another. The insurance policy terms play a major role as well.
Some companies have collision policies that cover their employees, but that specific coverage might have restrictions or limitations that involve specific factors.
If the employee is acting within his or her employment scope, the employer cannot force the employee to reimburse for damages related to the accident. If the employee was being reckless or violating company rules, the employee can be fired because of the crash.
Most states have at-will employment, which means the employee can be fired or quit at any time and for any reason. If you have been in an accident with a company vehicle, you should talk with your supervisor to understand the company’s position in such situations.
Consult with a Personal Injury Attorney
If you have been in an accident while operating a company vehicle, you should consult with a personal injury attorney. A lawyer will know how to proceed in such situations and is familiar with the state and local laws.
Your accident injury attorney works on a contingency basis, so you have nothing at all to lose.
Complete the Free Case Evaluation Form on this page to have the details of your accident reviewed by a lawyer in your area.
