What Happens When You Get in an Accident in a Company Vehicle?

As of 2022, commercial fleets averaged approximately 4.5 accidents per driver per year [1], which offers insight into the number of car accidents that occur with a company-owned vehicle. This statistic becomes even more alarming when considered alongside the fact that work-related car accidents are the leading cause of occupational death or injury [2].

If you are a victim of a company vehicle crash, contact a Chicago personal injury attorney to ensure your legal rights are protected, and you receive the compensation you deserve.

Immediate Steps After the Accident

After a company car accident, your primary concern should be ensuring immediate safety and documenting the scene. Follow these steps:

Ensure Safety and Seek Medical Attention

You should prioritize the well-being of everyone at the accident scene, regardless of who is at fault.

If possible, move all vehicles to the side of the road to prevent a pile-up car crash, then check on everyone involved in the accident. Even if no one appears injured, ensure that everyone receives appropriate medical care in case they have hidden injuries.

Contact Authorities

You should always dial 911 if there are serious injuries or significant property damage. You also need to get the authorities involved if it is not immediately apparent who the at-fault party is or if there are any disputes about the accident.

If there is no immediate danger to life, you can call the local non-emergency police line to file a police report. Your employer’s insurance company will require this report to submit a claim.

Gather Information

Next, gather information from the other involved party, including the other driver and any passengers. Write down their contact details, insurance policy number, and vehicle details, including the license plate number.

Document the Scene

Images of the crash’s immediate aftermath can be critical evidence for any car accident. This documentation is especially important for company car accidents, as your employer’s insurance company will want to determine who can be held liable.

Take photos and videos of the accident scene, including the area around the crash and interior and exterior shots of the damaged vehicles. If you or anyone else has visible injuries, document these as well.

Reporting the Accident

You must report the company car accident so that your employer can file an insurance claim and begin investigating the incident.

Notify Your Employer

You should report the accident to your employer in accordance with company policy, which should be outlined in an employee handbook.

If you are an independent contractor using your personal vehicle to complete company business, you should still report the accident, as the employer’s insurance coverage may also apply to your own car.

Cooperate with the Investigation

After you report a company car accident, two critical processes begin. The insurance company will review the evidence to determine whether their policy covers the claim, and your employer will investigate how the accident happened.

The company may use this outcome to revise its policies, restrict access to company vehicles, or make decisions regarding your employment. You should cooperate with these investigations, answering all questions to the best of your ability.

Depending on your specific industry, accidents in company cars may need to be investigated by a third party in addition to the company and the company’s insurance adjuster. For example, the National Transportation Safety Board (NTSB) will investigate a fatal truck accident. The Department of Transportation may also need to be notified.

Determining Liability and Insurance Company Coverage

While any car accident can be nerve-wracking, those driving a company vehicle have additional concerns, including navigating the insurance claim process and how it might impact their employment.

Employer’s Liability

Vicarious liability applies to car accident cases where employees use company vehicles for work purposes. This principle holds the employer accountable for the employee’s actions, granting that the individual was using the car for business purposes.

In the case of independent contractors, the employment contract may prevent insurance from holding the employer liable except in special circumstances. Such cases can become complicated quickly, making it crucial to seek professional counsel to determine whether the employer can be held vicariously liable.

Employee’s Liability

In some cases, the employers cannot be held responsible for employees’ actions, such as if they are involved in an accident outside of business hours or the employee was running personal errands on company time. Gross negligence or criminal actions like drunk driving may be solely employee liability.

Company Car Insurance Coverage

If you are driving a company car for business purposes, the company’s insurance policy will likely cover property damages and bodily injury. However, these policies vary significantly and may not be enough to cover damages for yourself and other drivers.

Personal Insurance Coverage

When driving a company vehicle for personal reasons, such as going to get lunch on break, you may be personally liable for any accidents. In that instance, your personal insurance coverage will be responsible for any damages.

Seeking Compensation for Injuries

After an accident in a company car, you have several options for seeking compensation to cover your needs. A personal injury attorney can help you review your legal options and choose the best course of action.

Workers’ Compensation

Workers’ compensation will cover a company car accident even without determining fault; all that is necessary is that the accident happened during work hours and within the scope of employment.

That means that even if individual human error was responsible for the accident, such as the driver becoming distracted, workers’ comp will still provide benefits.

However, workers’ compensation only covers medical bills and a portion of lost wages. It does not provide non-economic damages like pain and suffering or emotional distress. In most cases, independent contractors are not eligible for workers’ comp.

Third-Party Claims

If another driver was responsible for the accident, you may need to pursue compensation through a third-party claim against the other driver or entity.

An independent contractor ineligible for workers’ comp who has had an accident in a company vehicle may also seek a third-party claim against the employer.

Third-party claims, unlike workers’ comp, depend on liability. It must be proven that the individual or organization was partially or solely responsible for the accident. To prove this, the attorney must prove these four facets of negligence:

• Duty of Care – The individual or organization had a responsibility to the plaintiff. This obligation can include ensuring vehicles are free of defects, driving within the speed limit, and paying attention to the road.
• Breach of Duty – The responsible party failed to uphold their duty of care. This neglect may include failing to drive according to traffic laws, driving drunk, or not performing routine maintenance on a fleet vehicle.
• Causation – The accident would not have occurred or been as severe if the responsible party had upheld their duty of care.
• Damages – The plaintiff suffered financial losses due to the crash, such as medical expenses or a loss of earning potential.

A third-party claim may offer more than workers’ comp because it can cover a wider range of damages. This compensation includes economic and non-economic factors, such as pain and suffering or loss of enjoyment of life. However, proving liability is complicated; these cases often involve extensive negotiation with the responsible insurance provider.

Consulting a Personal Injury Lawyer

Many factors contribute to which claim type is the best possible option for you, including whether you were at fault, whether you are an employee or contractor, and how specifically the accident happened.

A company car crash lawyer can help you determine the best course of action in these cases by reviewing all facets of the case and performing a thorough investigation. Additionally, a law firm can assist you in filing for workers’ comp and disputing denials by gathering evidence to prove why your claim should be approved.

Potential Consequences for the Employee

Even if workers’ compensation will be paid regardless of who caused the company vehicle crash, the employee may still face consequences depending on the specific circumstances involved.

Disciplinary Action

Employers will investigate the car accident to understand how it happened and what company policies may have been broken during the crash.

In some cases, such as weather-related factors or mechanical failure, the employee could not have prevented the accident and may not be subject to disciplinary action. However, companies may change their policies to prevent further accidents.

However, if it’s determined that a mistake you made while driving caused the crash, you may face disciplinary action. For example, if surveillance footage shows you failing to yield or texting while driving, your access to company vehicles may be revoked.

Impact on Employment

If you were found to be personally liable for the accident, your employer may consider you an excessive liability and choose to terminate employment. This liability may be especially so if you were breaking the law, such as drinking while driving. Even if your employment is not terminated, there may be concerns about your job security.

Reach Out to a Car Accident Lawyer Today!

A crash in a company car can be more complicated than one involving two passenger vehicles, as employer liability and different insurance policies play a role in deciding compensation. Also, fault will determine whether you should file a workers’ comp or third-party claim.

Rosenfeld injury lawyers can assist you in protecting your rights and guiding you through the process of filing a compensation claim. Our firm can assist you in exploring your options, negotiating on your behalf, and ensuring you are treated fairly by your employer and the insurance company.

Schedule a free consultation by calling (888) 424-5757 or using our contact form.

References: [1] GPS Insight, [2] National Safety Council

All content undergoes thorough legal review by experienced attorneys, including Jonathan Rosenfeld. With 25 years of experience in personal injury law and over 100 years of combined legal expertise within our team, we ensure that every article is legally accurate, compliant, and reflects current legal standards.