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Work Vehicle Accidents: Am I Covered?


Motor vehicle accidents involving company-owned cars, trucks, and other types of vehicles present a large number of legal questions. Who is responsible? Whose insurance company should pay for the damage? What role does workers’ compensation insurance play? If your company vehicle has been involved in a collision and the driver is found to be at fault, whether it be you or one of your employees, the following can help you make sense of what is to come.

The Insurance Company’s Role

If the company car is insured by a commercial auto insurance policy, which it should be in order to be legally driven, the insurance company will cover the resulting damages up to the limits of your policy. If the accident results in injuries, the responsible party will pay. In some cases, the responsible employee will be legally responsible to reimburse their employer for the resulting damages. With that being said, depending on how the employee was using the company car at the time of the collision, the employer may also be financially responsible for the damage.

In most cases, employees who drive company cars do so within the scope of their employment, such as making deliveries, traveling to visit clients, driving to and from jobsites, and other job duties. Under the legal doctrine of respondeat superior, employers are legally responsible for the actions of their employees during the scope of their employment. Therefore, when an employee’s negligence causes a collision, both the employer and the employee can be held responsible for injury and property damages.

While a company’s general liability insurance will most often cover an employee against third-party civil actions for damages stemming from a car accident, employees who are committing a crime while driving a company vehicle will not be covered.

When Does Workers’ Compensation Apply?

While liability insurance will cover injuries to third parties in the event of a collision involving a company vehicle, workers’ compensation pays for injuries to the company’s employee. This coverage will pay for an employee’s medical bills, out-of-pocket costs, and a portion of their lost wages. Similar to general liability insurance, employees who are injured in a collision while committing a crime will not be covered by workers’ compensation.

Collisions involving company cars can become complicated fast due to the number of involved parties. Unfortunately, due to the vast number of moving parts, insurance companies can make mistakes and deny coverage to the rightful parties. If you believe you have been wrongfully denied coverage following a collision involving a company vehicle, our Houston insurance bad faith lawyers can assert your rights as a policyholder and maximize your chances of securing the compensation you deserve.

Call 833-7RIGHTS or get in touch with our office online today to review your options.