Car accidents are stressful enough on their own, but when you’re driving a company car, things can get complicated. There are several factors that determine who is responsible for damages, insurance coverage, and liability. If you’re involved in a car accident while driving a company vehicle, you need to understand your rights and the steps you should take. This post will break down what you need to know if you get into a car accident in a company car.
Who Is Responsible for a Company Car Accident?
When you’re driving a company car, liability often depends on who caused the accident and whether you were on the clock. In most cases, the employer’s commercial insurance policy covers accidents that happen while you’re performing work-related tasks. However, things can get tricky if you were using the car for personal errands or if you were outside the scope of your job duties.
If the accident was your fault and it happened while you were working, the employer is likely responsible under a legal doctrine called “respondeat superior.” This doctrine holds employers responsible for the actions of their employees while they’re performing job-related tasks. If the accident happened while you were driving to a meeting, making a delivery, or doing something directly related to your job, your employer’s insurance should cover the damage.
However, if you were using the company vehicle for personal reasons at the time of the accident, you may be personally liable for damages. For example, if you were running an errand unrelated to your job and caused a crash, you could be held responsible for any costs associated with the accident.
When Is an Employer Liable for an Accident in a Company Car?
The legal concept of “respondeat superior” applies in most cases when the accident occurs during work-related activities. This means that if you were acting within the scope of your job, your employer would generally be responsible for the accident, even if it was your fault.
For example, let’s say you’re a delivery driver. If you’re driving to make a delivery and you cause an accident, your employer’s commercial auto insurance will likely cover the damages. Similarly, if you’re traveling for a work meeting or picking up items for a project, the same rules apply.
But if you were using the company vehicle for personal use, such as running errands or going to lunch, then your employer may not be responsible for covering the damages. In this case, you would need to rely on your personal auto insurance to cover the costs.
What Happens if You Cause the Accident in a Company Car?
If you’re responsible for the accident while driving a company vehicle, the responsibility for damages depends on several factors. If you were working at the time, your employer’s insurance will likely cover the damage. However, if you were using the vehicle for personal use, you could be personally liable for the accident, which might mean you have to pay for repairs, medical bills, and other damages.
In some cases, your employer may require you to reimburse them for the cost of the accident, especially if it was your fault and the vehicle was being used outside of work duties. It’s important to review the terms of your employment and the insurance policy to understand the details.
What About Other Drivers Involved in the Accident?
If another driver caused the accident, that driver or their insurance company will typically be responsible for the damages. If the accident occurred while you were in a company car, your employer’s insurance would likely handle the claims and file with the other driver’s insurance provider.
In situations where multiple parties share responsibility, like in cases of partial fault, things can get more complicated. The insurance company or courts may need to determine how fault is shared and how to divide the costs. In these cases, it’s important to work with a lawyer who can help clarify your rights and guide you through the legal process.
What if an Independent Contractor Is Driving a Company Car?
Things get a little different if you’re an independent contractor driving a company vehicle. Generally, independent contractors are less likely to have the same legal protections as regular employees when it comes to accidents. The employer may not be held responsible for the actions of an independent contractor in the same way they would for an employee.
If you’re an independent contractor, you may need your own insurance to cover damages in the event of an accident. However, if another driver is at fault, the other driver’s insurance should cover the damages, and your employer’s insurance may come into play, depending on the circumstances and the terms of your contract.
Insurance Coverage After a Company Car Accident
If you’re in a car accident while driving a company car, two main types of insurance coverage may apply: liability insurance and workers’ compensation.
- Liability Insurance: This insurance covers damages caused by the party at fault in the accident. If you’re injured in the accident, it will also cover your medical bills and lost wages, depending on the circumstances. If you caused the accident, your employer’s commercial insurance will likely cover the damages. If another driver is at fault, their insurance will pay for your damages.
- Workers’ Compensation: If you’re injured in the accident while performing work-related duties, workers’ compensation may also apply. This insurance covers medical bills and lost wages if you’re unable to work due to the accident. However, it doesn’t cover pain and suffering, and the benefits may not be as extensive as those provided by liability insurance.
How Fault Is Determined in a Company Car Accident
Fault in a company car accident is usually determined by reviewing the details of the crash. Key factors include:
- Police Report: Officers on the scene will document the facts of the accident, including who they believe is at fault.
- Witness Statements: Eyewitnesses can offer important insights into the cause of the crash and who should be held liable.
- Accident Reconstruction: In complex cases, experts may reconstruct the crash to determine fault.
Once fault is determined, it will impact who is responsible for paying for the damages and which insurance policy applies.
Get a Free Consultation With Our Car Accident Lawyer Today
Getting into a car accident in a company vehicle can be complicated, but understanding the factors involved can help you determine what steps to take. If you’re unsure about your situation or need help determining who is liable, it’s a good idea to consult with a car accident attorney. They can review the details of the accident and help protect your rights. If you’ve been in an accident while driving a company car, don’t hesitate to reach out to an experienced attorney for help.
Call us today at (702) 970-4222 for a free consultation and to get the guidance you need.
