Employer Liability When Employees Use Personal Cars for Work

Many businesses allow employees to use their own vehicles to complete work-related tasks such as visiting clients, delivering supplies, or running company errands. While this may seem convenient, it can also create significant legal and financial risks for employers. If an employee is involved in an accident while driving for work purposes, the employer may still be held liable, even if the vehicle belongs to the employee.

Vicarious Liability

A key legal principle involved in these situations is vicarious liability, which holds employers responsible for the actions of their employees when those actions occur within the scope of their employment. In practical terms, this means a company could be liable for damages if an employee causes a crash while performing work duties.

Courts generally look at whether the employee was acting on behalf of the company at the time of the accident. Activities that may qualify as work-related driving include:

• Traveling to meet clients or customers.
• Delivering items between offices or job sites.
• Running business errands such as to go to the bank or pick up supplies.
• Purchasing food or materials for a company event or meeting.

If the trip benefits the employer or was assigned by the company, the accident may fall within the scope of employment.

When Employers May Not Be Liable

There are also circumstances where an employer is typically not responsible for a crash involving an employee’s personal vehicle. One common example is the “coming and going” rule, which generally excludes accidents that occur while an employee is commuting to or from their normal workplace.

Similarly, if the employee was driving for purely personal reasons, such as attending a medical appointment or running a private errand, the employer may not be liable. However, exceptions exist. If the employee performs a work-related task during the commute, liability could potentially return to the employer.

Insurance Coverage Considerations 

When an accident occurs, the employee’s personal auto insurance policy usually provides the first level of coverage. However, serious crashes can quickly exceed policy limits, especially in multi-vehicle accidents or incidents involving significant property damage or injuries.

For this reason, many businesses purchase hired and non-owned auto insurance. This type of policy helps cover liability when employees drive vehicles that the company does not own, including personal cars used for work. The employer’s policy can provide additional protection if the employee’s personal insurance is insufficient or denies coverage due to business use.

Contact a Personal Injury Lawyer

Not all employees have company vehicles, so when a worker is using their personal vehicle for business purposes, the laws can get a little murky. Who is responsible? When is the employer liable?

A Houston car accident attorney from The West Law Office, PLLC can help you understand liability so that you can get the compensation you need after a serious crash. Let us assess your case and help you through the claims process. Call (281) 347-3247 or fill out the online form to schedule a consultation today.

Source:

blog.axcethr.com/employer-liability-when-employees-use-personal-cars-for-work-purposes