[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/blinsuranceadvisors.com\/2021\/10\/20\/what-happens-if-my-business-car-is-in-an-accident\/#BlogPosting","mainEntityOfPage":"https:\/\/blinsuranceadvisors.com\/2021\/10\/20\/what-happens-if-my-business-car-is-in-an-accident\/","headline":"What Happens If My Business Car Is in an Accident?","name":"What Happens If My Business Car Is in an Accident?","description":"Car accidents, even when they don\u2019t involve injuries, are jarring and troublesome. This may be particularly true when they involve a business car that doesn\u2019t belong to the driver. Most experienced drivers have been involved in at least one fender bender but may wonder what happens if they damage the company car or if such...","datePublished":"2021-10-20","dateModified":"2026-05-29","author":{"@type":"Person","@id":"https:\/\/blinsuranceadvisors.com\/author\/elio\/#Person","name":"Elio Vecchiarelli","url":"https:\/\/blinsuranceadvisors.com\/author\/elio\/","identifier":6,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/15c35da080c419503e03feba5465f40e1c34461e8828c512527e237a9019be5b?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/15c35da080c419503e03feba5465f40e1c34461e8828c512527e237a9019be5b?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Blue Lion Insurance Advisors","logo":{"@type":"ImageObject","@id":"https:\/\/blinsuranceadvisors.com\/wp-content\/uploads\/2020\/04\/blue-lion-logo.png","url":"https:\/\/blinsuranceadvisors.com\/wp-content\/uploads\/2020\/04\/blue-lion-logo.png","width":600,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/blinsuranceadvisors.com\/wp-content\/uploads\/2021\/11\/what-happens-if-my-business-car-is-in-an-accident.jpg","url":"https:\/\/blinsuranceadvisors.com\/wp-content\/uploads\/2021\/11\/what-happens-if-my-business-car-is-in-an-accident.jpg","height":836,"width":1254},"url":"https:\/\/blinsuranceadvisors.com\/2021\/10\/20\/what-happens-if-my-business-car-is-in-an-accident\/","about":["Business Insurance"],"wordCount":698,"articleBody":"Car accidents, even when they don\u2019t involve injuries, are jarring and troublesome. This may be particularly true when they involve a business car that doesn\u2019t belong to the driver. Most experienced drivers have been involved in at least one fender bender but may wonder what happens if they damage the company car or if such a collision is complicated by injuries. Their conscientious employers may worry too.At Blue Lion Insurance Advisors in Redbank, New Jersey, we focus on providing business insurance policies that protect both companies and their employees from the consequences of car accidents as well as other unpredictable events. Because we are commercial insurance brokers not affiliated with any particular insurance company, we are able to be objective and offer a wide range of cost-effective options.If you are an employer looking to prevent unnecessary difficulties when your employees drive company vehicles, contact us at (732) 649-1600 or on our website. We will provide you with a free consultation and advice tailored to your specific needs.Why Accidents Involving Business Cars Are ComplicatedGenerally speaking, business car accidents raise more questions than crashes involving privately owned vehicles, such as:Will the employee\u2019s injuries be covered by workers\u2019 compensation?Who will cover property damages?Was the employee acting on behalf of the employer at the time of the collision?If the employee violated the law, will that affect the insurance outcome?\u00a0If you still have questions after reading this content, please contact us for an informative conversation with our helpful staff.Vicarious Liability for Business Car Accidents in New JerseyIf your car accident has occurred within the scope of the driver\u2019s employment, the legal doctrine of vicarious liability holds the employer responsible for both property damage and personal injuries. In almost all cases, these costs will be paid by the employer\u2019s insurance company.Examples of when the employer is responsible under the doctrine of vicarious liability include situations in which the employee was:Using the company car to visit a customer or clientDriving to a business meetingMaking deliveries of company products or materialsRunning work-related errandsTransporting another employeeDriving during work-related travelStill, it is important to understand that the employer is not responsible for damages if the employee was:Engaging in criminal activity at the time of the accident (e.g driving while impaired)Using the company car to run personal errandsStopping for a cup of coffee en route to a work-related activityDriving to non-business (e.g. recreational) activities outside of business hoursAn independent contractor, driving for reasons unrelated to his\/her contractIn any of the above situations, the employee\u2019s own auto insurance will have to be tapped for coverage since, though the individual was driving a business car, the accident did not occur during work.How does Workers\u2019 Compensation Insurance feature in a business car accident?Two types of employer insurance coverage are in play when an employee is involved in a business car accident:Commercial Vehicle Insurance will pay for losses sustained by a third party (e.g. driver and passengers of the other vehicle) for both property damage and personal injuryWorkers\u2019 Compensation will cover injuries employee(s) suffered in the business car accidentTypically, an employee who has suffered injuries in a business car accident is limited to filing a workers\u2019 compensation claim. Exceptions are made, however, if your employer\u2019s actions caused the employee intentional harm or if the car manufacturer was the negligent party (e.g. sold the vehicle with a dangerous defect). In such cases, the employee may be able to sue for damages.Both employers and employees should be aware, however, that it is usually impossible to file for Workers\u2019 Compensation for injuries incurred during commutation unless the employee was performing a work-related task on the way to work.Workers\u2019 Compensation is a no-fault type of insurance so its payment of business car accident costs in no way holds the employer responsible.\u00a0Contact Our Knowledgeable Business Car Insurance Advisors TodayDon\u2019t wait for an accident to happen. Be proactive. Call on Blue Lion Insurance Advisors to keep your insurance policy Blue Lion Strong\u2122.\u00a0"},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"2021","item":"https:\/\/blinsuranceadvisors.com\/2021\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"10","item":"https:\/\/blinsuranceadvisors.com\/2021\/\/10\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"20","item":"https:\/\/blinsuranceadvisors.com\/2021\/\/10\/\/20\/#breadcrumbitem"},{"@type":"ListItem","position":4,"name":"What Happens If My Business Car Is in an Accident?","item":"https:\/\/blinsuranceadvisors.com\/2021\/10\/20\/what-happens-if-my-business-car-is-in-an-accident\/#breadcrumbitem"}]}]