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Experts estimate that there are around 6 million car accidents in the US each year.
If you’re involved in a car accident under regular circumstances, you’ll usually have to work with your insurance company to get compensation. However, when you have an accident while driving a company car, the procedure is a little different.
Company vehicle accident policy can vary from one company and one insurer to the next, but there are some elements that are common to most policies.
Read on to learn more about what usually happens after a company car accident.
The Basics of Company Vehicle Accident Policy
As noted, many aspects of the law around company car accidents are similar to those surrounding normal accidents on the road. However, there are a few important differences when it comes to liability.
Employer Liability vs Employee Liability
When you cause any kind of damage as a result of your professional activities under the direction of your employer, a legal concept called vicarious liability comes into play. This means that your employer will be liable to pay damages to the injured party rather than you.
However, there are certain limitations to this. If, for example, you were going somewhere in a company car that did not relate to your job, your employer might be able to escape liability. This is more likely if you were driving irresponsibly.
Impact on Private Insurance Policies
One of the most common questions people ask after being in a company car accident is whether they are obliged to inform their private insurer. The answer is different in different scenarios.
You won’t usually have to tell your existing insurance provider about an accident you have while working. However, if you want to take out a new policy, you may have to tell them about any such accident in accordance with rules on full disclosure.
Can You Be Fired?
Again, the answer to this question depends on the situation.
If you contributed to the accident by driving recklessly or committing another offense, your employer may have the right to terminate your contract. However, if the accident was the fault of the other driver or there was fault on both sides, your job is likely to be safe. The specifics of your employment contract should shed more light on this.
If you’re worried that you might get thrown under the bus, get a consultation with a legal specialist in this area today.
Protecting Yourself After a Crash in a Company Car
Company vehicle accident policy can be a little complex at times. This is unfortunate for anyone that ends up having an accident, because it makes it more difficult to recognize and effectively protect your rights.
However, the guidance here should show you the right course of action if you’ve had a company car accident.
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