Employee accident using personal vehicle

[Ann Miller]

Jurisdiction

Massachusetts

An employee was driving his personal vehicle on a work-related errand. He had a fender-bender (his fault) in which the other party's vehicle was damaged but not his own. He has auto insurance but no doubt his rate will go up in the future as a result of the accident. What is my responsibility as the employer, and how and who do I compensate?

 

[army judge]

An employee was driving his personal vehicle on a work-related errand. He had a fender-bender (his fault) in which the other party's vehicle was damaged but not his own. He has auto insurance but no doubt his rate will go up in the future as a result of the accident. What is my responsibility as the employer, and how and who do I compensate?

I suggest you, the employer, consult your attorney.

You are potentially very exposed, maybe.

 

[adjusterjack]

Ann Miller, love your dancing.

What is my responsibility as the employer, and how and who do I compensate?

Until somebody comes to you and says "You owe me money for the accident" you have no responsibility as the employer.

However, as an employer of anybody who uses their own vehicle in the conduct of your business, you could potentially have vicarious liability for any accident that they cause.

Your protection against that possibility is (or should be) in your business insurance policy.

Now I'm going to ask you to do the most unpleasant thing you have ever done in your life.

Read your business insurance policy.

Look for Employers Non-Owned Auto Liability Coverage aka Hired and Non-Owned Auto Liability coverage.

If you can't find it ask your agent where to look for it in your policy so that you can confirm that it's there.

If, by chance, you don't have it, insist that your agent get it added to the policy ASAP. It won't be backdated to cover the employee's accident but it will cover you going forward.

 

[txls]

I agree that it should be covered by your business insurance policy.