Companies that reimburse their staff for mileage should be aware of certain aspects regarding the company role in case an auto accident takes place when a staff member is driving.

Employees often feel as if they are not liable for any obligations when they get behind the wheel of a company the vehicle. In truth, each unique circumstance will typically depend on the nature of why the vehicle was being used at the time of the crash. While employees may feel as if they do not have a personal stake in the vehicle’s condition, they should still use discretion and safe driving habits in the attempt to avoid accidents.

The following categories summarize when and how an organization is held responsible for staff vehicle accidents.

Impacts of Vicarious Liability
Vicarious liability can place liability on the employer in instances where the staff member is actively working for the employer. This allows the victims to press charges against the company for any type of damage a staff member causes while they are working.

Role of the Employee’s Car Insurance Company
The employee’s car insurance will most likely cover most of the injuries or damages. In most cases, there should be no issue with having the insurance step in. Issues take place when the staff member does not have insurance coverage, or not enough.

Workman’s Compensation
If an employee was hurts while operating their own vehicle for work reasons, the employee can qualify for workers compensation. If the employee has insurance at the time they were hurt, the insurance will first be required to cover injury expenses. After the coverage provided by the employee’s insurance company has been used, Workmen’s Compensation may cover lost wages or other injuries.

Circumstances Where the Company is Not Held Responsible
There are several instances when the company is not liable for an accident in their vehicle. The company cannot be held responsible if…
• The employee is commuting to or from work
• The employee’s vehicle takes on damage
• The staff member made a quick stop for themselves (such as to grab lunch)

Dangerous Winter Weather
Hazardous road conditions are also a common cause for auto collisions. However, this is not a valid defense for getting into a car accident, as drivers must act with due care according to varied road conditions that may take place. The driver must use extra caution by traveling at speeds that may be slower or by following at a greater distance. If any of the points above take place while the driver is operating a company vehicle during a hazardous condition, the driver is likely liable. However, if the driver is actively conducting business for the company and an accident occurs on a hazardous road, the company may be responsible for damages.

When an employee is injured in a car accident while operating a vehicle solely for work intentions, the company may be liable to cover any damages.