Company Car Accidents and Employer Liability

Getting hit by a driver behind the wheel of a company vehicle is a different experience than being involved in a car accident with a private driver. There is often a question looming in the background: Who is actually responsible for what happened? When an employee causes a crash while driving for work, the company that employs that driver might share legal responsibility for the harm caused.

What Does Employer Liability Mean in a Car Accident Case?

“Employer liability” is the legal concept that holds a company responsible for the actions of its employees while they perform work-related duties. This principle, known as respondeat superior, applies when an employee causes an accident while acting within the scope of their job. Because the employer benefits from the employee’s work, the law often treats the company as a responsible party when that work leads to harm.

When Is an Employer Legally Responsible for a Crash?

An employer is generally responsible when the employee was performing a work-related task at the time of the accident, which may include making deliveries, traveling between job sites, or running errands for the company. If the driver was on a personal detour or acting entirely outside their job duties, the employer may argue it bears no responsibility.

What if the Company Knew the Driver Had a Poor Driving Record?

When a company hires a driver with a history of traffic violations, accidents, or license suspensions, it may be held liable under a theory known as “negligent hiring.” Employers have a responsibility to take reasonable care when placing someone behind the wheel of a company vehicle, and if a background check would have revealed a dangerous driving history, that failure can become a significant factor in a legal claim.

What Types of Compensation Can an Injured Person Pursue?

Someone injured in a company car accident may be able to pursue compensation for medical bills, lost wages, pain and suffering, and long-term care needs, depending on the severity of the injuries. Because employers often carry commercial auto insurance policies with higher coverage limits than personal policies, there may be more financial resources available than in a typical accident. The scope of damages will depend on the facts of the case and applicable state law.

How Is Fault Investigated in a Company Vehicle Accident?

Investigating “fault” often involves gathering employment records, vehicle maintenance logs, driver history reports, and communications related to the employee’s assignment at the time of the crash. Surveillance footage, GPS data, and witness statements can also help build a clear picture of what happened. Because companies have legal teams and insurers working quickly after an accident, injured claimants benefit from beginning their own documentation process as soon as possible.

What if the Employer Makes a Quick Settlement Offer?

This happens sometimes and claimants are often tempted to sign the offer and accept the compensation. We advise against doing this before consulting a car accident lawyer. Initial offers can be low and designed to limit the company’s liability; the amount might not cover the entire scope of the claimant’s current and future damages.

How Long Do I Have to File a Claim After a Company Car Accident?

Every state sets a deadline, called a “statute of limitations,” for filing a personal injury claim, and missing that deadline typically means losing the right to seek compensation. In Indiana, injured individuals generally have two years from the date of the accident to file a lawsuit, although certain circumstances may affect that timeline. Consulting with a lawyer early helps protect that right before time runs out.

When a Company Car Crash Turns Your Life Upside Down, Our Skilled Elkhart Car Accident Lawyers at Wilson & Kinsman, LLC Is in Your Corner

If you were injured by an employee driving a company vehicle, contact our Elkhart car accident lawyers at Wilson & Kinsman, LLC. Call 574-522-1900, book online now, or submit a form for your free consultation. With office locations in Elkhart and South Bend, Indiana, we proudly serve clients in the surrounding areas.