As unfortunate as it may sound, accidents are the mysteries of life. Sometimes they are unpreventable, and when they occur, they leave permanent physical, psychological, and even financial marks or losses. Sadly, car accidents do occur and they also affect those who use business cars to conduct their everyday duties or work. Such people include personal chauffeurs, police, cab drivers, tour guides, or anyone else whose work involves being on the road. With the risk of getting involved in a car accident being a fact that may not be completely ruled out, it is crucial to understand your business liability and the process of compensating your employees in the event of an accident.
This article explains the situations that may necessitate compensation and the circumstances that require you to act as an employer. However, it important to note that the circumstances and liabilities may differ from country to country.
Understanding Business Liability and Compensation Terms
Liabilities are legal responsibilities that an organization tends to perform given various situations. Business liabilities tend to be unpredictable and also varied. Besides, they are different from the necessary financial obligations. In case your employee gets involved in a car accident while on a business-related assignment, he or she is qualified for compensation as part of your legal responsibility as the employer.
How to know that your employee is qualified for compensation
It is worth noting the legal rights and options that are available in case of a work-related car accident involving your employee. However, it is worth noting that these rights abide when your employee gets involved in an accident during a work-related mission.
For your organization, you get to define the work-related acts that qualify your employee for compensation within the following scope:
- If the accident occurred when they were making deliveries assigned by the company
- If they drive for a living
- If they were running errands for you or on your behalf as the boss
- If as the employer you pay them to travel
Hence, in case of an accident during any of the above work-related activities, the employee is entitled to compensation.
Claims to make for work-related accident compensation
For your employee, the circumstances surrounding the accident influences the type of payment he or she receives. The claims include personal injury claims and worker’s compensation claims.
A personal injury claim in this context is made if another driver caused the accident. Your employee is entitled to receive compensation for medical bills and losses stemming from the car accident. To make a personal injury claim, there are two available options to explore:
- First, your employee can file a third-party insurance claim directly with the at-fault driver’s insurance carrier. Alternatively, they can file a personal injury lawsuit. Hence, they ought to discuss the situation with a car accident lawyer to determine the process of engaging in a claim. It helps more, especially when the side at fault puts up a fight.
- On the other hand, they get to file a worker’s compensation claim if they are insured or covered workers. As the employer, you can facilitate the compensation process by completing the paperwork and liaising with the state agency that covers your worker. Alternatively, the employee can file a compensation claim with the worker’s compensation agency.
The personal injury claim and worker’s compensation claim differ in several ways, as follows:
- For a worker’s compensation claim, the employee gets to receive payments for medical bills and lost income only. On the contrary, with a personal injury claim, you receive compensation that includes payments for pain and suffering.
- A worker’s compensation claim usually has a given limit, which means the employee cannot claim more than the set maximum amount regardless of the losses incurred. This is different from the personal injury claim that puts into consideration the damage and losses incurred, and one is compensated on such a basis. It is also much more comfortable when the employee’s personal injury lawyer gets to assess and negotiate the compensation claim on his or her behalf.
- The employee’s personal injury claim requires that he or she informs you as the employer within the shortest time possible. This could be immediately or within a month. It helps that you get down to work to ensure that the claim is addressed and the compensation processed. A worker’s compensation claim allows much more time for the employee to place a request, and that could be even three years.
While at it, please note that liability doesn’t always lead to litigation. But if you receive a lawsuit, it is still important to trust an experienced car accident lawyer.
As an employer who has employees who earns by hitting the road, remember that many risks are involved. It is essential to understand the liability of the organization you are heading, and the terms of compensation in case work-related accidents occur.