When a car crash involves a company owned vehicle, the legal and insurance implications can become far more difficult and complicated compared to a typical crash. Whether you are the one that caused the crash, or you are a victim of someone else’s negligence, driving a company car significantly impacts how a personal injury claim is handled, especially if the employee was on the clock at the time of the accident. In this blog, we will be exploring how company-owned vehicles can impact a personal injury claim from the perspective of the at-fault driver as well as the victim.
At-Fault Perspective
If the employee was involved in a car crash in which he/she was at fault while on the clock, the employer can be held vicariously liable for the crash. This essentially means that the victim can pursue compensation through a third-party lawsuit against the at-fault driver as well as the company that owns the car. This can cover:
- Pain and suffering
- Emotional distress
- Long-term disability
- Future lost earnings
Additionally, company vehicles typically carry commercial auto insurance which often provides significantly higher policy limits compared to a personal auto insurance policy. Therefore, if you are injured due to the negligence of the driver of the company vehicle, you could potentially be entitled to much more compensation than a typical car crash, depending on your injuries.
However, if the employee was not on the clock at the time of the accident, the employer is generally not liable for the accident as the legal protection known as respondeat superior, a legal term meaning that the employer is responsible for the actions of the employee, only applies when the employee is acting within the course of their job duties.
If the company’s commercial insurance policy doesn’t cover personal use, or the insurance company denies the claim, the employee can be held personally liable for the accident, meaning that their personal insurance policy will be applied instead of the company’s commercial insurance policy.
Victim Perspective
If an employee is involved in a car crash in which they are the victim, the fact that they are driving a company-owned vehicle still plays a large role in how the personal injury claim is handled.
If an employee is on the clock when involved in a car crash, they have the ability to receive workers’ compensation from their employer. This can cover:
- Medical expenses
- Lost wages
- Rehabilitation
In this situation, the employee involved in the crash also has the ability to file a third-party personal injury claim against the at-fault driver. This may cover:
- Pain and suffering
- Lost wages
- Medical expenses
- Disability or disfigurement
- Property damage
If the at-fault driver does not have sufficient insurance, the company’s commercial auto insurance may offer uninsured or underinsured motorist coverage that you can use if you were on the clock at the time of the accident. If you weren’t on the clock during the accident, you cannot use the company’s uninsured or underinsured motorist coverage unless it supports personal use which is usually uncommon. This means that your personal uninsured or underinsured insurance policy would most likely apply.
A crash involving a company-owned vehicle in which the employee is not at fault can be just as or even more complicated compared to when the employee is at-fault as multiple entities may be involved including:
- Workers’ compensation insurer
- The company’s auto insurer
- The at-fault driver’s insurer
Other complications can also come into play in these types of crashes such as whether or not the employee driving the car was qualified enough to be driving the car, vehicle use restrictions, independent contractor issues, and much more. This is why it is imperative to hire an experienced injury lawyer that has the ability to navigate through this complex legal process for you and fight to protect your rights as well as the compensation that you deserve.
Get David Get Paid
If you’ve been injured in a crash involving a company-owned vehicle, don’t face the legal complexities alone. Call the experienced team of lawyers at Femminineo Law. With over 100 years of experience specializing in personal injury, we will navigate through the complexities of your case, and get you the compensation you deserve while you focus on your recovery. Call us today at 855-65-CRASH or visit our website at getdavidgetpaid.com.
