As a business owner, you are responsible for every aspect of your business, even if you are not present yourself. For those within the transportation industry, or for those who have drivers completing services in general, it’s important to know the impact of those employees’ being involved in a car accident.
Ensuring you handle the process in a manner that overcomes the legal challenges involved is crucial. Given that there are seven factors affecting settlement values in court, anything you say and do can have an impact. To avoid undue liability facing your business, learn everything you need to know to protect yourself and your company.
The Legal Responsibilities of Business Owners After an Auto Accident
First and foremost, it’s important to understand what liability you actually have when an employee or company vehicle is involved in a crash. There is a distinction between personal and business liability that many business workers often forget.
While you likely can’t be held personally liable for one of your employees or company cars being involved in an accident, unless there are extreme circumstances, you do have business liability. As the business owner, you are responsible for training your employees, holding them accountable, maintaining company vehicles, and more.
If the accident caused was due to negligence, employee recklessness, mechanical breakdowns that could have been foreseen, or other similar causes, you may be liable. Beyond this, you also have an obligation to report the accident, cooperate with authorities, and ensure your business insurance is aware of the incident.
The Importance of Insurance Coverage
On the topic of insurance, if you don’t have business auto insurance already (which you should) make the investment now. This insurance kicks in to cover the costs associated with accidents that involve company vehicles and employees. Liability, collision, comprehensive, and uninsured motorist coverage, as with personal plans, are the usual auto insurance options you can consider for your needs.
While you may not need all of these types, evaluate your insurance needs by calculating the risk to your business. This will help you ensure that you have adequate protection if someone gets into a crash, as otherwise your business will need to front costs.
There are situations where insurance disputes may arise and if an insurance company denies your business claim, you may have legal options available. Speak with your internal counsel to discuss options if this occurs.
Dealing with Employee Involvement in Auto Accidents
As the employer of someone who is involved in an accident while on the job, you may need to deal with a workers’ compensation claim. Designed specifically for a matter such as this, and assuming the accident happened during the employee’s normal course of duty and they weren’t at fault, they may be entitled to compensation.
You might need to file their claim and ensure that they receive proper benefits promptly, otherwise, you could run into legal issues if it’s perceived that you are attempting to block the pay.
However, if the employee involved in the accident actually caused it through negligence or recklessness, such as getting distracted by their phone or speeding, then the process differs. Their actions are still a reflection of you and the company, which means you could be held liable if you don’t reprimand them. Otherwise, your company could be held liable and face potential consequences.
The Legal Process After an Auto Accident
To know what to do after a car accident with one of your employees occurs, you need to actually understand the legal process. Part of the proceedings will be on your behalf to handle but the employee involved in the crash will also have responsibility. To that end, take the time to also educate them on the following steps:
- Document the Scene: Take photos of vehicle damage, injuries, and surrounding conditions. Collect witness statements and obtain a copy of the police report.
- Seek Medical Attention: Ensure all injuries are assessed and documented, even if they appear minor, as medical records will be crucial for the claim.
- Notify the Insurance Provider: The business or employee involved should contact their respective auto insurance company and provide all gathered information. Employers may also need to notify their commercial auto insurance provider if a company vehicle was involved.
- File the Claim: Submit the necessary claim forms, accident details, and supporting documents to the insurer. Businesses should coordinate with employees to ensure all required paperwork is completed.
- Cooperate with the Investigation: The insurance company may conduct an investigation, request additional documentation, and assess liability before approving or denying the claim.
- Follow Up on the Claim: Monitor the claim’s progress, communicate with the insurer regularly, and ensure all medical and repair expenses are properly processed and reimbursed.
By taking care of all of the above steps, you can reduce the liability, along with the subsequent impact of that liability, that your business faces.
Preventative Measures to Avoid Future Legal Issues
Beyond avoiding an accident in the first place, the next best way to prevent legal issues is to be prepared. The following three key tips can assist with this:
- Conduct Employee Training and Safety Policies: Training programs and clear safety policies can prevent accidents and reduce liability
- Implement an Accident Response Plan: Create an internal protocol for handling auto accidents that involve company vehicles of employees, which involves contacting insurance, medical providers, gathering evidence, and more
- Have Regular Insurance and Legal Check-ups: Review your business insurance plan(s) and legal strategies regularly to keep them up to date and avoid potential future claims.
Protect the interests of your business
By understanding your legal responsibilities, ensuring you have proper insurance coverage, and actively taking preventative steps, you can minimize the risks and liability that your business might be facing. Stay informed and prepared for any and all legal challenges that may arise from auto accidents that your business is involved with, no matter how minor the accident may be.
