Employers may feel reassured when employees drive personal vehicles for work purposes, instead of a company car, believing their liability is reduced since the employees’ auto insurance should cover any damages.
However, this is not always the case. Under vicarious liability, employers may still bear responsibility for damages if an employee causes an accident while driving their personal car for work purposes.
Axcet is a consulting firm that provides employee benefits plans, risk management, HR compliance and outsourced human resources services for businesses.