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Protecting Small Business from Auto Accident Claims

An auto accident can change the situation to a great extent, especially for a small business owner. Being a business owner, you would wish to do everything that can minimize the risk of an auto accident claim against the company. Auto accident claims can cost significant man-hours as well as thousands of dollars for resolving even if you win. Therefore, it is essential to consider the types of claims that can be made against the firm as take the steps to reduce such risks.

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Types of Claims That Can Be Made Against Company

Knowing the types of claims that can be made against the company due to an auto accident can be helpful. Depending on who is at-fault for the accident, the claims can be divided into two groups

First Group of Claims

It includes claims that your employee had an accident while he/she was in the course and scope of employment. In this case, the company as his/her employer is liable indirectly for the negligence causing the accident. It is a legal doctrine known as “respondeat superior”. In such a situation, the negligent party is the employee, however, you would be responsible for the damage done or injury as this happened in your business prosecution.

Second Group of Claims

It includes claims that are directly against the employer alleging that the employer was responsible directly in a way that contributed to the accident. These claims fall into two categories. First claims that the vehicle of the company was not equipped or maintained properly which resulted in an accident. Second claims that the employer hired a habitually incompetent or negligent driver or retained such an employee even after noticing a problem with the employee.

Preventing Claims Against Business

Preventing the claims arising out of equipment issues and maintenance is straightforward. The vehicles of the company need to be maintained regularly as well as appropriately. Preventing the claims arising out of retention situations or negligent selection is a bit harder. However, it also involves the forethought about which person can be trusted with keys to the company car or truck. The same thing is true about preventing the vicarious liability claims.

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Policies of the Company

The policies of the company in this area need to be designed carefully to prevent the problems arising in the first place. In case your employee is going to drive the company’s vehicle, then company policy needs that any safety issue with the vehicle is brought to the manager’s attention. The policies of the company need a regular background check-in “motor vehicle record” and traffic citations issued against each driver. Ensure your company follows policies and failure to do would so would lead to additional liability.

Apart from these, reviewing the auto insurance policy every year with insurance agents to ensure the type of coverages on the policy is also important. Along with the type of coverages ensuring the amount of coverages can help you protect the assets of your firm. In case you still need any guidance regarding the auto accident of your company’s vehicle, consulting a Colorado Springs car accident lawyer is advised. The attorney would help with claims against the company.

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