Can I be sued if my employee gets into an auto accident on the way home from work?

The answer to this question is YES -- so, make sure you have an auto-insurance rider on your business general liability policy.


Generally, an employer is held responsible for an employee's "torts", such as car accidents, committed during the "course and scope" of employment. So, if you ask your employee to run to Staples to get office supplies, and the employee gets an accident, your company is unquestionably responsible to the injured party. If your company doesn't have auto insurance, it could be forced into bankruptcy.


However, what if your employee is on his or her way home from work? Are accidents during the "commute" to and from work also the employer's responsibility? They didn't used to be, but ever expanding California law continues to create exceptions. One such exception is where the use of the employee's vehicle gives some incidental benefit to the employer. This exception is called the "required-vehicle" exception. If you require your employee to have a car and use it for work purposes, then an accident during the employee's commute is the employer's liability. The required use doesn't have to be pervasive, or written, or a technical requirement of the employment. Thus, if make an employee available for something like on-site customer support, the exception can apply.


The only sure way out of the exception appears at this point to be providing a company car to employees who need a vehicle during working hours. Thus, the on-site customer support can be accomplished without the employee's vehicle. And, the "required-vehicle" exception won't apply.


The moral to the story?? Make sure you are properly insured!!!