Who Covers a Work-Related Car Accident?

If you drive a car for work, or you run an errand for your employer, in Michigan and you are in a car accident, who pays for the expenses? It depends on a variety of factors, such as who the at-fault party is and if the company owns the vehicle. If you experience injuries due to the accident, you may receive compensation in a number of ways. 

According to NCCI, if you experience injuries from an on-the-job accident, the employer’s workers’ compensation should cover your medical expenses. In fact, motor vehicle accidents are responsible for a large number of workers’ compensation claims. If the accident results in a fatality, workers’ comp is also responsible for death benefits to the survivors.

According to FindLaw, the employer may also be responsible to cover car accident-related expenses through their insurance company due to the term vicarious liability. When the employee is performing a job duty when the crash occurs, even if the driver was negligent, the employer’s car insurance policy should cover property and medical expenses.

If, however, you are in an accident and you were not performing a job-related task, the employer may not have the responsibility to pay. Same with if you were doing something illegal at the time of the crash. Testing positive for alcohol or drugs can immediately void your ability to collect expense reimbursement from either the employers’ insurance policy or workers’ compensation benefits. Driving a company-owned vehicle has its benefits, but you must also treat the responsibility with the respect it deserves.