Company vehicle accidents: when an employer is responsible

When the employer is responsible#

Under respondeat superiorRespondeat superior. The rule that makes an employer legally responsible for harm an employee causes while doing the job, that is, within the scope of employment. Glossary, an employer is legally responsible for the wrongful acts of an employee if they happen within the scope of employment. Cornell Law School's Legal Information Institute describes the scope of employment as the range of activities an employee is reasonably expected to perform as part of the job.

In practice, the question is what the driver was doing at the moment of the crash:

When the employer is responsible, you can claim against the employer and its insurer, not only the driver. That matters because the employer's insurance may have higher limits than the driver's own policy.

Some states add rules that reach the vehicle's owner. In New York, every vehicle owner is liable for deaths and injuries caused by the negligence of anyone driving it with the owner's permission, so a company that owns the car can be liable whether or not the trip was work-related.

Commercial auto insurance#

Businesses insure their vehicles under commercial auto policies. The business chooses its limits, subject to state minimums, and many trucking and bus companies that cross state lines must meet federal insurance minimums. Our truck accident guide covers those.

When an employee crashes in their own car while working, their personal policy is often the first to respond. Some employers also buy coverage for employees' cars used on company business. Rideshare drivers have their own insurance rules, explained in our rideshare accident guide.

At the scene, note anything that ties the vehicle to a business: a company name or logo, a vehicle or fleet number, and any USDOT number on the door. Ask the driver who they work for and whether they were working, and write down the answer and the time.

Independent contractors and gig drivers#

Respondeat superior applies to employees, but not to independent contractorsIndependent contractor. A worker who runs their own business and controls how the work is done. The respondeat superior rule that applies to employees does not apply to independent contractors. Glossary. Some couriers and app-based drivers work under contractor agreements, so the label matters.

The label in a contract is not the end of the question. Courts look at how much control the company has over the details of the work. The IRS, for tax purposes, also looks at the entire relationship: whether the company controls how the work is done, the business side of the job such as pay and expenses, and the type of relationship, such as benefits and a written contract.

Even when a contractor drove, the hiring company may still face a claim for its own carelessness in some situations. A licensed attorney in your state can tell you whether that applies.

Government vehicles#

Governments are protected by sovereign immunitySovereign immunity. The rule that governments cannot be sued unless a law allows it. Tort claims acts allow some claims, with limits. Glossary unless a law allows claims. For federal vehicles, that law is the Federal Tort Claims Act. It makes the United States responsible for injuries caused by a federal employee's negligence while acting within the scope of the job, under the law of the place where the crash happened. It covers Postal Service vehicles too. You claim against the United States, not the employee.

Steps for a claim involving a federal vehicle#

1. File a written claim with the agency. That means a signed Standard Form 95 or other written notice of the incident, with a claim for money damages in a sum certain, sent to the agency whose employee caused the crash within 2 years.
2. Choose the amount carefully. Under federal law, a lawsuit cannot ask for more than the amount in the written claim, unless the increase rests on newly discovered evidence or intervening facts.
3. Wait for a decision. If the agency makes no final decision within 6 months, you can treat the claim as denied.
4. Sue in federal court if needed. After a written denial, the lawsuit must be filed within 6 months of the date the denial was mailed.

The United States does not pay punitive damages or interest before judgment. Lawyers' fees are capped at 20% of an administrative settlement and 25% after a lawsuit is filed.

State and local vehicles fall under each state's own tort claims law, and the rules vary widely. Many require a written notice of claimNotice of claim. A written notice that must be sent to a city, county or state agency before you can sue it, often within a few months. Glossary within months. In Texas, notice to a government body is due within 6 months, and recoveries are capped; our Texas guide has the amounts. Check your state in our state-by-state guide.

If you were working when you were hurt#

If you were driving for work, or were a passenger in a work vehicle, workers compensationWorkers' compensation. State insurance systems that pay medical care and part of lost wages to workers hurt on the job, usually whoever was at fault. Glossary may cover you. The US Department of Labor describes workers' compensation as providing wage replacement and medical treatment. Workers for private companies and state and local governments claim through their state's workers' compensation board; federal employees are covered by a separate federal program.

Workers' comp often limits suing your own employer. In Texas, for example, workers' compensation benefits are the exclusive remedy against an employer that has workers' comp coverage, apart from limited exemplary damages in some death cases. Texas has another feature worth knowing: private employers can choose to carry workers' comp insurance, but it is not required in most cases, so some Texas employers have no workers' comp at all.

A crash caused by another driver can also lead to a third-party claim. Washington's Department of Labor and Industries lists a motor vehicle collision caused by another driver as a typical example, and says you are entitled to workers' comp benefits regardless of who caused the injury. Texas law works the same way: an injured worker can claim workers' comp benefits and also seek damages from a third party, and the carrier can be repaid from that recovery for the benefits it paid.

Transportation incidents are a leading cause of death at work. The Bureau of Labor Statistics counted 1,146 workers killed in roadway crashes in 2024, and transportation incidents caused 38.2% of all fatal work injuries.