Can A Company Make You Pay For Vehicle Damage

Having access to a business automobile can be a great privilege, but it can also be a significant strain. This is factual if an employee is involved in an accident while driving a business vehicle. 

Is an employer liable for an automobile accident involving an employee? Is it possible for the firm to make the employee responsible for the accident? Is it a car accident no insurance case?

When a company car is used for business purposes, it is common for insurance to cover work-related accidents. Unfortunately, if an employee is involved in an accident while driving a corporate vehicle while on personal business and is at fault, the firm may be held liable. 

It can be challenging to identify who is responsible for an automobile accident, and the situation is often considerably more confusing. So, to be clear, here is the answer to the question: may a strong force you to pay for vehicle damage?

Who is responsible for vehicle damage?

Most firms ensure that the cars they provide their employees are in excellent functioning shape. The insurance company will pay for any losses incurred by an employee in a covered accident, including damages to the injured motorist, passenger, pedestrian, or cyclist (where applicable). 

The responsible person will be held liable if the accident results in injuries or damages that were not immediately identified. Find out who’s at blame as soon as possible if your corporate car is involved in a collision with another vehicle. Accidents involving corporate vehicles are investigated to determine who was at fault. Companies are responsible for any harm their employees suffer while working for them.

If, however, the employee was not engaged in the course of their employment, they may be required to compensate the firm for any losses or injuries. Employees operating a work vehicle in an accident are protected by the employer’s company automobile insurance. In an automobile accident, an employee who was at fault and was driving outside the scope of their work may be responsible for damages. 

If you experience an accident while driving to and from work in a company vehicle, it may be considered job-related driving. 

Employees involved in a business car accident may be dismissed if their conduct before the accident were irresponsible or against company policy.

Bottom line

Who is responsible for a company car accident is determined by how the employee operates the vehicle. Providing the employee was acting within the extent of their employment, the employer will be covered by workers’ compensation insurance for work-related injuries. If an employee was driving a corporate automobile for personal reasons and was at fault in an accident, the firm may be liable for the damages. Knowing that your employer’s insurance would cover damages and injuries if you are involved in an accident while driving a corporate vehicle is reassuring.

Of course, for the accident to be covered, the employee must have traveled for work-related reasons. You could get answers to your concerns about liability from an accident lawyer if you were engaged in an accident while driving a business car or were hit by another motorist while driving a company vehicle.

Adam Hansen

Adam is a part time journalist, entrepreneur, investor and father.