While our practice generally stays away from employment law, two recent cases came to our attention and because a number of our clients either require their employees to use personal vehicles while conducting business, or actually provide company vehicles to their workers, we thought these issues were important enough to make sure that our clientele knew of their potential liability for their employees' actions even when off work. We'll consider all circumstances to determine your best next step. We suggest purchasing additional limits in addition to your $1,000,000 primary commercial auto liability. Was this document helpful? I'm almost positive it would be the Employees as Insureds endorsement they would need. Well also suggest some changes you can make to your commercial auto insurance policy to better accommodate the risk and ensure you are protected. Employees who need to drive frequently for their jobs can use their personal vehicles instead of a company car. If your employees are using personal vehicles for work, you could be on the hook for the following: So yes, your business could be exposed if an employee gets in an accident while driving their personal vehicle for work reasons. What is the Employers Responsibility & Risk? One such question involves employee use of personal vehicles on company time. Each appears to reach a different result, but a distinction can be drawn from the facts of the two cases. Vital Coverage Insights Every Business Owner Needs to Know, Managing Your Risk While Recruiting and Hiring: The Best Practices Every Business Owner Should Know, Real-Life Claims: Best Practices for HOA Property Contracts and Maintenance, ClaimsCaseStudies GolfRiskManagement, What Is Lessors Risk Only Insurance? The company could have neglected to purchase coverage but if thier agent had any sense they'd recognize the exposure and include it. Florida Law On GPS Tracking Of Employees. Having a policy that determines permissive and non-permissive use of the vehicle can be critical in mitigating the risks that your business could be exposed to while the vehicle is not under your control. All rights reserved. The Court found that the minor stops for yogurt and to attend a yoga class did not change the "incidental benefit" to the employer of having the employee use his or her personal vehicle to travel to and from the office and other work-based destinations. Employers can be responsible for injuries caused by employee involved in an accident if employee is using personal vehicle for business purposes (312)766-1000. Keep a record of all employees who drive (or could drive) personal vehicles for the business, including current drivers licenses and safety inspection certificates. Driving amongst home and your general worksite is not imposed deductible. (This sample wording is provided in or der to give you and/or your attorney a starting point in drafting language appropria te for your specific use.) You are probably covered under the Business Auto Coverage Form. In these situations, employees were said to be outside of the course and scope of employment during their daily commute. Learn more about the benefits of small business membership in the U.S. Chamber of Commerce, here. However, if your personal vehicle use for work is required you can deduct the travel expenses or mileage if any of these is true: You incur expenses going from your home to a . Just your best options for low-cost business insurance in 5 minutes. The full revelation of business utilize will counteract scope issues once a claim happens. Non-owned auto insurance protects your business if you are found legally responsible for a car accident an employee had in their own car during company business. You cannot verify their driving history and you cannot provide training, if necessary. How many passengers they expect and that everyone will use the vehicle restraints when the vehicle is in motion. Sales representatives utilizing their autos essentially for business may find that their premiums are expanded. If not, despite everything you have to keep up a mileage log as proof to deduct the standard rate mileage recompense on your charges. Ensure youre covered and protect your team with adequate insurance and a comprehensive policy. Scope can be acquired. The number of miles they expect to drive the vehicle. To limit obligation presentation, it is fitting for California businesses to request that their representative furnish the organization with the revelation page from their own collision protection every year to affirm sufficient scope. According to the United States Census Bureau, there are more than 260 million vehicles in the U.S. Also, some automobile insurance policies limit coverage only to authorized use of the vehicle. To limit obligation introduction, it is prudent for California bosses to expect workers to acquire composed authorization from the organization before they drive an individual vehicle on organization business. Company vehicles are given to employees to take home for a variety of reasons. GSA has adjusted all POV mileage reimbursement rates effective July 1, 2022. Utilizing the vehicle for attire will discredit scope under numerous individual auto approaches. The two easiest and most effective ways to protect your company are to purchase a non-owned auto insurance policy and to create a program for employees that drive their own vehicles on company business. Allowing the use of company vehicles by non-employees is a bad idea. A copy of the employees drivers license. Horton achieves this through a process which consistently delivers on promises made and holding themselves accountable. For example, police officers drive squad cars and state workers often drive state-owned vehicles, In some instances, though, workers use their personal vehicles for work purposes. Austin is an experienced Commercial Risk Advisor specializing in property & casualty risk management for religious institutions, real estate, construction, and manufacturing. The motorcyclist was badly harmed and sued the representative and the organization, asserting that the organization was obligated under the law. A pedestrian was hit by a car and knocked down, resulting in a shattered pelvis. Most guarantors will include "representatives as extra protected" for a little additional premium. Using the personal vehicle for work law involves using your car for business purposes may be to get supplies, hardware, or prospecting sales. We can also ensure that you receive proper compensation for any present . Farrow & Pulice, P.A. The arranged stops for solidified yogurt and a yoga class in transit home did not change the accidental advantage to the business of having the worker utilize her own vehicle to go to and from the workplace and different goals. It ought to be the different way. Create an account to follow your favorite communities and start taking part in conversations. In that case, Halliburton Energy Services, Inc. v. Department of Transportation, which was a combination of three separate lawsuits (six persons claimed injuries), Halliburton had an employee named Troy Martinez who was required to use a pick-up truck to drive to and from work and for business purposes. If you are on a work task and are involved in an accident, your employer may be liable in part or all for the damages that result but that depends . 2. Ensure your employees maintain their vehicles' safety and are up to date on their insurance and drivers license. An employer can pay an employee for vehicle expenses in three ways. Employees wont text, talk on the phone, or operate any electronic equipment while driving. Personal use of a company vehicle should be restricted to the employee assigned to the vehicle, and non-employees, such as spouses or children, should not be permitted to operate the vehicle. In the event that your manager repays you for mileage, you should keep written documents of your driving. Because distracted driving accidents can have serious implications for companies, a company policy that emphasizes the importance of driving attentively and restricts the use of mobile phones is essential to preventing employee accidents in all vehicles, both personal and company-owned. Generally speaking it is what's referred to as a "force multiplier" meaning that just the sight of a police car out and about as a deterrent for crime. Under precedent-based law, bosses are in charge of the activities of their representatives. There is a high likelihood of this happening, so we suggest working out something with company car insurance rules to determine who is responsible for each expense. No pressure. Once a plan is established, we are committed to plan execution. Similarly, in United Health Care Ins. Bosses are not required to repay you for mileage in many states. The optional standard rate is just that: optional. When Your Employer May Not Be Liable for Your Car Accident. Its also a good idea to review their motor vehicle record (MVR) to ensure that its acceptable and there are no red flags. The other 50% of the time he worked on oil rigs for Halliburton at other locations around California. No need to spend hours finding a lawyer, post a job and get custom quotes from experienced lawyers instantly. Each time your boss makes you utilize your vehicle at work, record the beginning, and closure odometer readings alongside the date. Taking these simple steps will help keep your employees safe, reduce your risk and future insurance premiums. To stay on top of all the news impacting your small business, go here for all of our latest small business news and updates. Do you have an agreement with your employee regarding how damage to the company vehicle will be resolved if it occurs during personal use? Most business auto strategies incorporate no scope for harm to a worker's auto. Employers are not required to reimburse you for mileage in most states. The method can only be used for vehicles that are not subject to the luxury auto cap (see discussion, below). The employee will be the only person to operate the vehicle. Yes, you can require employees to use a personal vehicle for work, and for many employers, this may seem safer than providing company cars. Hired coverage protects you in situations where the company or the driver doesnt own the vehicle, like if an employee is driving a borrowed or rented car. Vicarious liability means you could be held liable for unlawful actions taken by someone else. All rights reservedWeb Design & Hosting by Webtrix, 6454 Coldwater Canyon Ave, North Hollywood, CA 916061-818-760-2000 | 1-818-760-3908 (fax) | Disclaimer | Site Map, Bruce Rudman has been practicing construction law for 15 years. Request that employees sign Motor Vehicle Authorization (MVR) forms and pull their records annually. Do employees pose a risk to your business when they use personal vehicles for work duties? Grow with who you know. I don't mind the extra hours, but I don't make much money and cannot afford to be driving my car around without some sort of reimbursement, especially since gas costs so much. If an accident occurs, the employee will immediately let their employer know about it. Driving a personal auto in lieu of a company-owned vehicle may seem to minimize an employers liability, but companies can be held partially liable for damages in the event of an accident, and if an insurer discovers the individual was driving for business, it may take action against the employer for subrogation purposes. All three of her ultimate destinations were within two miles of her home in Woodland Hills. This means an employer can impose requirements such as making you use your own vehicle at work. According to that law, a commercial motor vehicle "means any vehicle which is not owned or operated by a governmental entity, which uses special fuel or motor fuel on the public highways, and which has a gross vehicle weight of 26,001 pounds or more, or . During that time, they will probably complete some personal trips or errands, too. 312-766-1000 (text) info@blg-legal.com . A few examples include: However, employers are not responsible for employees running personal errands. We apply insight and experience to drive more value and deliver better outcomes from your benefit programs. Liability Insurance: An employer's liability insurance usually covers the costs of damages sustained by third parties, including medical bills, lost wages, and pain and suffering. Although employees are covered under the typical business auto policy, their family members and significant others are frequently not. To provide employers with a standard rate for compensating employees when they drive personal vehicles for work-related purposes; To set the rate at which self-employed individuals can deduct mileage on their tax return; In 2023, the IRS standard mileage rates are: 65.5 cents per mile for business miles driven Require yearly proof of employees personal insurance policy. Has been disposed of on public property. [6] See Florida Game and Fresh Water Fish Commission, Division of Law Enforcement, s. 6.6.4, Division Directive 52-1, allowing off-duty law enforcement employment with commission approval and use of uniforms and patrol vehicles; and Department of Highway Safety and Motor Vehicles, Florida Highway Patrol, s. 5.19.00, Policy No. For a free consultation with the attorneys at the Law Offices of Anidjar & Levine, call 1-800-747-3733 today. 1615 H Street, NW Using a personal vehicle for work-related tasks is common for sales positions where employees must travel to sales calls. On the date of the incident, the employee used her personal vehicle to transport herself and co-employees to a company sponsored program. Accidents occurring while commuting or traveling between job sites, Damage to their vehicle in a workplace parking lot or garage, Employee Personal Car Use: How to Protect Your Business. A worker needs to make the lowest pay permitted by law after any business related costs are paid by the representative. You can lower your premiums by setting a higher deductible, but the maximum is $1,000. Employees can be eligible for worker's compensation if they were injured while driving their personal vehicles for work related purposes. In the Moradi case, the employer required the employee to use her personal vehicle to travel to and from the office and make work related trips during the day. Schedule a quick call to learn more. There are many factors to consider, but the best way to handle the situation is to discuss your situation with . Delivery type vehicles such as classic cargo vans or box trucks with no passenger . Because accidents often happen when employees are en route to and from work, the courts had come up with the "going and coming" rule where employers were generally exempt from liability for negligence committed by their employees while on the way to and from work. "Wages are not genuinely "gotten" unless they are paid "without a worry in the world" and, in this manner, a worker can't "kick-back, specifically or in a roundabout way to the business or to someone else for the business' advantage, any piece of the wage conveyed to the representative. Most guarantors will include `` representatives as extra protected '' for a variety reasons... Family members and significant others are frequently not coverage Form they use personal vehicles for work?. We are committed to plan execution for your car Accident experience to drive frequently for their can! 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