Understanding Employer Liability for Work-Related Car Accidents

When employees are driving for work purposes, whether it's in a company car or their personal vehicle, employers often share the responsibility for any accidents that occur. The law allows for employers to be liable for the actions of their employees during work duties. This includes activities such as deliveries, client meetings, or running errands for the company. However, if the employee is driving for personal reasons, is under the influence, or is simply commuting to and from work, the liability typically falls on the employee’s insurance.

Work-related car accidents are a major cause of injuries and fatalities in the workplace across the nation. Each year, thousands of employees are involved in traffic crashes, resulting in a significant amount of lost work time. The common causes of these accidents mirror those on regular roads, such as distracted driving, speeding, fatigue, or inadequate vehicle maintenance. However, driving for work also includes the added pressures of tight schedules, unfamiliar routes, and multitasking, which can increase the risk. For these reasons, employers must ensure that vehicles are well-maintained, drivers are properly trained, and expectations do not encourage unsafe behavior. For example, you may notice heavily loaded triaxle dump trucks speeding egregiously on I-79 and the Parkway. That is because their drivers are paid by the completed load, not the hour, which is a major safety risk to drivers! How do I know? I was read ended by one and have two bulged discs in my neck to show for it. 

In the event that an employee is injured in a car accident while working, they typically qualify for workers’ compensation benefits. This no-fault system offers coverage for medical expenses, rehabilitation, and partial wage replacement even if the accident was the worker’s fault. While workers’ compensation does not cover pain and suffering, employees can seek third-party claims against negligent parties such as other drivers, vehicle manufacturers, or others at fault. Employees using their own vehicles for work purposes are also eligible for workers' comp, though their personal insurance should handle any vehicle damage.

When a company car is involved in a crash, the liability of the employer depends on specific circumstances. Many companies have insurance specifically for such incidents, which covers third-party injuries and damage. However, if the employee is off duty, intoxicated, or breaking company rules, they may be personally responsible for the financial repercussions and face disciplinary actions. In some instances, both the employer and employee could be held liable, especially if there is evidence of inadequate vetting, training, or supervision of the driver, or neglected vehicle maintenance by the employer.

Ultimately, assessing fault in company vehicle accidents involves considering the employee’s activity at the time of the incident, the company’s policies, and the insurance coverage available. Both employees and employers must understand these nuances, as they impact who is responsible for damages, how injuries are compensated, and the legal protections applicable after a work-related car accident.