Steps to Take if a Company Vehicle is Crashed by Your Employee
Every year there are six million accidents reported in the United States. There are times even employees cause accidents using company vehicles. It may or may not be serious. Continue reading to know what to do if an employee is involved in an accident with company vehicles. The first thing to do is to confirm that everybody is fine and establish who is responsible for the damages and injuries. This is a difficult question as it depends on the circumstances behind the accident.
Vicarious liability also known as respondeat superior where an employee causes an accident, but you had authorized them to drive the vehicle. In case an employee causes an accident when doing errands for the company or driving a client to or from an appointment then vicarious liability applies. 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. They cannot file a claim for worker’s compensation or against your insurance company. Such cases occur when the employee is driving under drugs or alcohol influence. If an employee causes an accident and he was not doing work-related activities, then an employer can avoid liability. 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. It will even further apply in case the other party does not have enough insurance coverage. It is advisable to file a worker’s compensation claim instead of pursuing the other driver involved in the accident. 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.
Employees will also sometimes have some liability where they are advised to consult their attorneys in a short time. Handling accidents caused by company vehicles can be complicated, and you are advised not to try to navigate them on your own. Employee collisions are not covered by all company insurance policies. Check to know whether you are covered if not consult insurance professionals to assist you in tweaking the coverage. Ensure you set rules for using company vehicles and educate your employees on how to handle these vehicles.