What Happens If Your Employee Gets Into an Accident? Protecting Contractors With Commercial Auto Insurance

For contractors, vehicles are essential to daily operations—whether transporting tools, materials or team members. But what happens if one of your employees gets into an accident while driving a company vehicle or using their own car for business purposes? Without proper coverage, you could face costly legal and financial consequences.

Why Commercial Auto Insurance Matters

Commercial auto insurance may protect businesses from liability when employees use vehicles for work-related purposes. Unlike personal auto policies, commercial auto insurance covers incidents that occur during business operations. If your employee gets into an accident, this coverage can help with property damage, medical expenses and even legal fees if a lawsuit arises.

When Your Business May Be Liable

Your business may be liable for any damages if your employee drives a company-owned vehicle and gets into an accident while performing work-related duties. So it’s critical to ensure all vehicles used for business are covered under a commercial auto policy.

However, even if an employee uses their personal vehicle for business errands—such as delivering supplies or meeting clients—you could still be held responsible. In these cases, hired and non-owned auto insurance may provide additional coverage, protecting your business from unexpected claims.

Safeguarding Your Business

The following steps may help mitigate risks:

• Ensure proper coverage. Work with your insurance provider to confirm that all vehicles, including personal ones used for work purposes, are adequately insured.

• Establish a driver policy. Set clear guidelines for employees who drive as part of their job. Conduct regular background checks and ensure valid driver’s licenses.

• Train employees. Provide safety training and enforce rules about distracted and reckless driving.

• Document usage. Maintain records of when and why employees are using vehicles for work purposes.

Learn More

Accidents happen, but the right commercial auto insurance may protect your contracting business from financial loss and liability. Contact First Choice Insurance Solutions Inc to ensure your policy meets your needs and keeps your operations running smoothly.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.