Getting into an accident while driving a company vehicle can be a stressful and concerning situation. Not only are you dealing with the aftermath of the accident itself, but you might also be wondering how the company, and potentially its insurance, will handle the situation. If you’re driving for work, such as making deliveries or running errands for your employer, you might be wondering: will the company defend you if you’re involved in an accident?
Understanding Liability and Insurance Coverage
In many situations, if you’re using a company car for work-related purposes, the company’s insurance coverage typically steps in to protect both you and the company. This can include scenarios where you are delivering a product, such as delivering pizzas, or running errands for the business. Unlike independent contractors working for services like Uber or Lyft, employees using a company vehicle usually have the benefit of the company’s insurance policy.
In the event of an accident, the company’s insurance will likely cover damages, and the company itself will be responsible for defending you if a lawsuit arises from the incident. Insurance companies work to protect their clients—both the employee and the employer—so you would generally not be left on your own.
The Importance of Reporting the Accident
If you’re involved in an accident while driving a company vehicle, it’s critical to notify your employer and the company’s insurance provider immediately. Even if you believe you weren’t at fault, you should still report the incident. Many times, companies require employees to report accidents right away so that they can start the process of managing the claim with their insurance company.
Once the insurance company is notified, they will typically step in to defend you. This is particularly important because if a judgment is made against you personally, it can also have repercussions for the company. Employers don’t want to risk facing a financial burden from an employee’s accident, and the company’s insurance policy is designed to prevent this from happening.
What to Do If You’re Sued After an Accident
In some cases, even after an accident, things might not seem settled. For example, a year later, you may receive a lawsuit filed against you individually and the company. This situation can feel overwhelming, but it’s important to understand that your employer’s insurance may still cover you. In such a case, it’s crucial to immediately notify both your employer and the company’s insurance provider about the lawsuit. The insurance company will often take over the defense of the lawsuit, covering legal fees and protecting you from personal liability.
The reason the company and its insurance would defend you is because they are also at risk if a judgment is made against you. Any legal or financial fallout could also affect the business, which is why they have a vested interest in ensuring the accident is properly handled and resolved.
Conclusion
Accidents happen, and while being involved in one while driving a company car can be unnerving, it’s reassuring to know that in most cases, the company and its insurance will come to your defense. However, it’s vital to act quickly—report the accident immediately, cooperate with the company and their insurance, and follow the necessary procedures. This will help ensure that you’re protected throughout the claims process and that both you and your employer are not left with unnecessary financial burdens. If you receive a lawsuit or any follow-up legal action, always communicate with your employer and their insurance provider to make sure you’re appropriately covered and defended.
