Steps to Take if a Company Vehicle is Crashed by Your Employee
There are six million car accidents per year in the United States. There are times even employees cause accidents using company vehicles. It may or may not be serious. Let us learn what to do in case an employee causes an accident using a company vehicle. The first thing to do is to confirm that everybody is fine and establish who is responsible for the damages and injuries. This determination is not easy as it depends on the reasons that caused the accident.
Vicarious liability applies when an employee gets into an accident using the company vehicles yet they had express authority to use the car. Vicarious liability applies if the employee was running company errands, driving a client from or to an appointment or running 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 responsible for any accident damages in case his employee was involved in an accident when committing an offense. It will not be possible to apply for a worker’s compensation against your insurance company. These cases include driving under the influence of alcohol or drugs. An employer can avoid liability in case their employee gets involved in an accident while the vehicle is not doing work-related activities. 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. Worker’s compensation will apply in case the other party involved in the accident does not have sufficient insurance coverage. Instead of pursuing such a driver the best thing is to file a worker’s compensation claim. You will not be compensated for damages and suffered pain however your medical bills and lost income are covered in worker’s compensation. To receive compensation your employer must prove the other driver was at fault. In case when the accident occurred, the driver has full authority to drive then it will be easy to receive compensation benefits.
There is a likelihood that as an employee you will have some liability and it is advisable to consult your lawyer immediately. Handling accidents caused by company vehicles can be complicated, and you are advised not to try to navigate them on your own. 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. To reduce accidents using company vehicles your employees should be educated and set rules on the authority to use company vehicles.