Employer liability for empolyee's automobile

cpsilver · June 2003

We have several employees who run errands for our company, bank deposits, etc. this morning an employee came back from a company errand with a broken windsheild. She claimed it happended when her car was parked, we have no way to determine wheter she is telling us the truth. are we responsible for reparing the windsheild? Do we need to acquire insurance on employee's automobiles in case of anothe incident, what if she had been injured?

Doug · June 2003

Our policy is that the employee's insurance is primary and ours secondary. Also, in our state, the insurance company must fix the windshield at no cost to the policy holder - a state law. Check to see if that is true for your state.

Hunter1 · June 2003

This topic has been covered before. You might find other answers by using the search feature. The driver's insurance is generally primary, although many employees don't realize that. Rather than you having to get insurance on employee vehicles, you should be making certain that employees who drive their own vehicles on company business have their own insurance. But then you should reimburse them a reasonable amount per mile which covers their cost of insurance.

njjel · June 2003

We are located in a city and in the past our ee's have complained when their cars have been either vandalized or broken in to and have wanted the company to reimburse them due to the fact that we are unable to provide secured parking. Any thoughts? We are in a union setting.

Balloonman · June 2003

Njjel, tell them to take a bus to work. This is that sickening entitlement mentality once again. Milage is typically paid when employees drive their own car for business purposes. That money covers gas, insurance and wear and tear. If you pay for the windshield will you pay for the totaled $40,000 Explorer or Mustang Convertible? No. Their insurance is primary.
My $0.02 worth.
DJ The Balloonman

Caroliso · June 2003

>We are located in a city and in the past our ee's have complained when
>their cars have been either vandalized or broken in to and have wanted
>the company to reimburse them due to the fact that we are unable to
>provide secured parking. Any thoughts? We are in a union setting.

Njjel, I can't speak to the union setting, but I deal with this all the time and it's not my most fun part of the job. Our lot is pretty open, we're in an urban environment, and I feel bad when employees come to me with the "my car was ding-ed in the lot" story. It's not that i don't believe them, but we lease space, our landlord is not liable for this sort of thing, and as I ask around even employers who own their lots don't take on that liability. A secured lot is a business option you'll take on or not, but in the absence it's "Sorry Charlie". And by the way, even with a secured lot, vandalisms and accidents can happen, and you're not likely to reimburse folks for those losses.
As for us, we offer free parking for all in an area where lots are non-existant, metered parking is inconvenient and short-term, and other on-street parking is limited to residents. We are right on several transit lines so, as someone else said, they could certainly take the bus/train if they didn't want to take the chance. The lot is in full view off our (and other) offices, so I feel the risks are limited on the vandalism. and as to dings, well that can happen anywhere.

njjel · June 2003

That's pretty much what I've been telling our employees. But, oh, you should hear them WAIL!

maryfmurray · June 2003

We are running into that issue with our employer liability insurer carrier at the moment. If you would like I can send you a copy of the draft policy that we have written so send to our insurance company showing what employees have for coverage on their own vehicles.

Write to me at [email]mmurray@rcaction.org[/email]

Employer liability for empolyee's automobile

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