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What Will You Do If a Company Car is Crashed by an Employee?

Every year there are six million accidents reported in the United States. At one point an employee can cause an accident with a company vehicle. The accidents caused by employees may or may not be serious. Let us learn what to do in case an employee causes an accident using a company vehicle. You first want to check if everyone is fine to know who is responsible for injuries and damages. It may not be easy to answer this question as it solely depends on who or what could have caused the accident.

Vicarious liability which is also respondeat superior is if an employee is involved in an accident yet you had authorised them to use the car. This kind of liability is applicable when the employee was running errands such as driving a client either to or from an appointment or running company errands as directed by the employer. Vicarious liability is not applicable in case the employer caused the accident when going to a place that was not authorized by an employer or was driving outside the scope of employment.

An employer will not be liable in case an accident is caused when the employee is committing a crime. When this happens, they will not be able to apply for a worker’s compensation against your insurance company. These cases include driving under the influence of alcohol or drugs. It is possible for employers to avoid liability if an employee causes an accident and was not doing activities that are work-related. In a court of law, it is termed as a frolic, and here employers hold their employees personally responsible.

Worker’s compensation will come into play if an employee is injured in an accident. If the other party involved in the accident does not have adequate insurance, then worker’s compensation comes into play. It is not used pursuing the other driver, so it is advisable to file for a worker’s compensation claim. Worker’s compensation will cover medical bills and lost income however it does not cover damages and suffered pain. You will only receive compensation if your employer can prove that the other driver was at fault. If an employee was authorized to drive then they will receive compensation benefits.
Consult your lawyer immediately in case you as an employer also has some liability. Never attempt to handle accidents caused using company vehicles on your own as they can be quite complicated. Not all insurance companies cover employee collisions. You need to confirm with your policy and ensure you are covered and if you do not get an insurance professional to tweak the coverage. Ensure you set rules for using company vehicles and educate your employees on how to handle these vehicles.