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Summary
Following a car accident in a company vehicle, the employer will typically pay for the damages and injuries.
Table of Contents
Who Pays If You're in an Accident in a Company Car
Employers are typically held liable for a company car crash involving an on-duty employee, meaning they or their commercial auto insurance will have to cover damages and medical expenses resulting from the vehicle accident.
However, while NRS 41.130 protects employees involved in a company car accident from being held personally liable if they were not performing job duties at the time of the accident, employers typically try to deny liability and shift responsibility to the employee and their insurance company.
Understanding Vicarious Liability in Company Car Accidents
Vicarious liability is a legal principle that holds employers responsible for their employees' actions while performing official work duties.
Under NRS 41.130, an employer may be held vicariously liable if the company car accident occurs while the employee is:
- Delivering packages for the company
- Traveling between work sites
- Running errands for the employer
- Driving to meet a client or handle official business matters
To understand if vicarious liability applies to your case, contact a Las Vegas car accident attorney from the Rodney Okano Car Accident Lawyer Law Firm today by calling (702) 566-3600 for a free consultation.
When Does Vicarious Liability Not Apply
While vicarious liability applies to a majority of collisions involving company vehicles, there are specific circumstances where it will not, including:
- Employee Was Not Acting Within the Scope of Employment: If the employee runs personal errands, drives the car home, or does anything else unrelated to work, they may be held liable for the accident.
- Employee Engaged in Criminal or Reckless Behavior: If the employee engages in criminal or reckless actions that violate traffic laws, such as drunk driving or street racing, they could face criminal charges and be held liable in a civil lawsuit.
- Independent Contractor: If the driver involved in the company car accident was an independent contractor, vicarious liability will most likely not apply.
What Happens If You Get in an Accident in a Company Vehicle and It's Not Your Fault
Company vehicle accidents where you are not at fault will alter the circumstances of the case, and it's crucial to understand these changes when determining liability.
At-Fault Driver's Insurance May Cover the Damages
Nevada is an at-fault state, meaning that at-fault driver(s) in a company car accident will have to use their auto insurance coverage to pay for the resulting injuries and damages.
Under NRS 485.185, all drivers must carry minimum liability insurance of:
- $25,000 for bodily injury per person
- $50,000 for bodily injury per accident
- $20,000 for property damage
Your Employer's Insurance Could Cover Costs If the At-Fault Driver Is Uninsured
If the responsible party is uninsured or underinsured, your employer may use their company insurance provider to cover damages under uninsured/underinsured motorist coverage.
This coverage covers injuries and damages caused by someone who lacks insurance or does not hold the minimum insurance requirements.
Can You Seek Workers' Compensation in a Company Vehicle Accident
Yes, if you were in an accident in a company car while performing work-related duties, you can seek workers' compensation benefits.
Workers' compensation can provide coverage for medical bills and lost wages no matter who is at fault, which is a benefit a typical insurance policy does not offer.
However, under NRS 616C.150, you can only seek workers' compensation if you suffer injuries that arose out of and in the course of employment, meaning that you had to be doing official work-related tasks during the time of the injury.
If you are wondering if you are eligible for worker's compensation, contact a Las Vegas personal injury attorney today by calling (702) 566-3600.
Will an Accident in a Company Car Cause Your Insurance to Go Up
In most cases, an accident in a company car will not cause your personal insurance premiums to rise.
However, there are exceptions, and your insurance could increase following a motor vehicle accident in a company vehicle.
When Could Your Personal Insurance Premiums Rise Following an Accident in a Company Car
In accidents involving company cars, your personal insurance premium could rise if:
- Your Employer Holds You Responsible: If your employer requires those who operate company vehicles to hold their own insurance policy, they may be able to file a claim against you or ask that you file a claim under your insurance company, which could result in an increase in insurance premiums.
- Your Employer Does Not Have Insurance: If your employer lacks the insurance policies required by state laws and the accident was partially or fully your fault, you could be sued personally by the other parties involved.
If you are being sued personally following a company vehicle crash, call (702) 566-3600 to speak with one of our Las Vegas personal injury attorneys and learn your potential legal rights.
Who Can Be Liable for a Company Vehicle Accident
In Nevada, multiple parties can be liable for a car accident involving a company car, and it's important to understand who these parties may be if you seek compensation for any injuries or damages.
Employer
Typically, the employer is the at-fault party in a company auto accident.
Vicarious liability laws hold employers responsible for their employees' actions unless the employee was using the car for personal reasons.
Employee
If the employee was using the company car for personal use or committing reckless or illegal behavior at the time of the accident, they may be held responsible for the resulting injuries and damages, regardless of vicarious liability.
Other Drivers
Another driver may be liable for the accident and its damages if they acted negligently or recklessly.
Shared Liability
Under NRS 41.141, multiple parties can be liable for a company motor vehicle accident.
This is because Nevada follows a modified comparative negligence rule, which states:
- Each party can be assigned a percentage of fault
- If a party is less than 51% responsible, they can still be eligible to recover damages; however, if they are at a greater percentage of fault, they will be barred from seeking compensation from the other party's insurance companies.
Cases involving shared liability can often be complex, which is why it's important to consult with a Nevada accident attorney to see how it may factor in your case.
Can an Employer Fire You for Getting into a Company Vehicle Crash
Yes, an employer can fire an employee for getting in a company vehicle crash; however, whether the firing is legal depends on specific factors.
When CAN an Employer Fire an Employee for a Company Car Accident
Following a company car accident, an employer can have legal and justifiable grounds to fire an employee if they:
- Commited reckless or illegal acts
- Had repeated accidents or traffic violations
- Used the company vehicle without authorization
- Violated company policy
When Can an Employer NOT Fire an Employee for a Company Car Accident
Situations where an employer can not fire an employee for a company motor vehicle crash are:
- The accident was not the employee's fault
- The employee files a workers' comp claim
- The employee has a contact or union protections
- The firing violates anti-discrimination laws
Can Employees Be Held Responsible for Damage to Company Vehicles?
Employees who damage a company vehicle can be held responsible; however, it depends on the circumstances of the accident, employer policies, and liability.
Regardless of the situation, employees will almost always be held responsible for damage to a company vehicle if they were:
- Using the car for personal use
- Violating company policies
- Using the vehicle recklessly or illegally
- Commit intentional of willful misconduct
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Rodney Okano Car Accident Lawyer is a Las Vegas personal injury law firm with over 20 years of experience helping clients obtain maximum compensation following injuries from accidents such as car crashes, worksite injuries, and slips and falls. Over those years, The Rodney Okano Car Accident Lawyer Law Firm has become an experienced law firm that can ensure exceptional results for any of its clients.
