Who Is Responsible for an Accident With a Company Car?

who is responsible for an accident with a company car

Determining liability in car accidents involving a company car can be complicated. Unlike accidents involving private vehicles, which are typically simpler to navigate, your legal options are less clear if you get into a collision while driving a company vehicle.

Discover everything you need to know about employee and employer liability for company car accidents, how fault is established, how the company should be notified, and ways to mitigate your risk.

Employer Liability in Company Car Accidents

Typically, the employer is liable for damages caused by an employee getting into an accident in a company car. This is covered under the legal doctrine of vicarious liability, which holds one party responsible for the actions of another in specific situations. In the case of company car accidents, it means the employer may be liable, even if they were not involved in the accident at all.

The concept of vicarious liability ensures that people can be compensated for any harm caused to them by an employee, even if the wrongdoer cannot personally pay for the damages. Making employers liable means they will take steps to prevent harmful behavior from their employees.

However, the employer is not automatically responsible for damages caused by company car crashes. Ultimately, it comes down to whether or not the employee was acting within the scope of their work duties at the time.

Employee Responsibility in Company Car Accidents

There are cases where vicarious liability does not apply, and the employee may be held liable for damages in a company car accident. If the car was being used for something outside of the employee’s work duties (such as running a personal errand in the vehicle) when the accident occurred, the victim cannot sue the employer. Instead, they must pursue compensation from the employee, either through their insurance or a lawsuit.

Determining Fault in Company Car Accidents

Determining fault for this type of accident is a complex process that must be taken on a case-by-case basis. For example, say the accident occurred during the scope of the employee’s work duties, but the crash happened because they ran a red light. In this case, the employee would be considered liable because their negligence in breaking traffic laws caused the accident.

On the other hand, specific laws may apply to certain industries. Truck drivers often have rules surrounding driving hours, for instance. If a driver is made to work beyond these limits and an accident occurs, the employer would be held liable.

In general, determining fault in company car accidents comes down to identifying negligence, which is the failure to exercise reasonable care resulting in harm to others. Depending on the specifics of the accident, eyewitness testimony, camera footage, police reports, and scene analysis may all be used to determine who is at fault for the accident.

Notifying the Company After an Accident

If you’ve been in an accident with a company vehicle, you need to report it to your employer as soon as it’s safe to do so — even if you’re not sure whether or not you will be held liable. You will need to fill out an accident report form and then cooperate with the ensuing company investigation. You’ll likely be asked to participate in a review of the accident to show that you were complying with all laws and company rules.

Legal Options for Those Injured in Company Car Accidents

If you’ve been injured in a company car accident, finding a personal injury lawyer should be a priority. An experienced lawyer can help to determine liability, navigate insurance coverage, address the employer’s liability, determine negligence, negotiate a fair settlement, and, if needed, represent you in litigation. 

Whether you’re seeking compensation from a company or its employer, or you’re an employee who believes you have a case against your employer after a company car accident, it’s important to discuss the matter with a personal injury lawyer as soon as possible.

Mitigating Risks and Preventing Company Car Accidents

For employers, company car accidents present serious legal risks. To help mitigate this, it’s recommended to have clear, strict guidelines in place around company vehicles, such as:

  • Limiting non-business use of company cars.
  • Ensuring vehicles are locked, secured, and safely parked when not in use.
  • Adjusting scheduling to avoid employees speeding between locations.
  • Doing thorough checks on employees’ driving records.
  • Requiring employees to report accidents they have while not at work.
  • Providing proper driver training.
  • Incentivizing safe driving and accident-free periods with rewards.
  • Establishing clear procedures in case accidents do happen.
  • Working proactively with your insurer to make the claims process more efficient.

Collaborating With Legal Experts in Company Car Accident Cases

Whether you’re fighting for compensation as a victim, establishing fault as an employee, or mitigating risk as a company, legal expertise is important when it comes to company car accidents. A skilled personal injury lawyer will help you navigate the complexities of your case, advocating for your interests every step of the way.

With the right representation, you can resolve the matter sooner, get a more advantageous settlement or court ruling, and hold those responsible to account.

Contact The Law Offices of Jacob Emrani Today

If you’ve been involved in a company car accident of any kind, the Los Angeles car accident attorneys at Law Offices of Jacob Emrani are here to help. With over 25 years of experience serving the Southern California area, our team is well-equipped to guide you through even the most nuanced and complex legal scenarios. Call (888) 912-7115 today to set up your no-cost case evaluation!

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Los Angeles

serving southern california

Address

714 W. Olympic Blvd.
Suite 300
Los Angeles, CA 90015

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