This can happen when there are multiple victims in an accident. The problem arises when the employee doesn’t have enough coverage. So what about the employee’s car insurance? Shouldn’t the employee’s car insurance take care of any damages or injuries? Yes, it should and will in most cases. If an employee drives somewhere for work purposes and gets into an accident and badly injures someone or smashes a Tesla, say, the employer can be sued to cover the damages that the employee can’t afford to pay. The thing to understand here is that vicarious liability can make a company liable for something that happens off premises. Vicarious liability can be a nice loop hole to get more money, but it’s also an important protection. Suing an employer is usually more lucrative than suing an employee so victims can use this law to get the most out of a lawsuit. So for example, if an employee drives to the bank for her employer and injures someone in an accident, the victim could sue the employer for damages. Vicarious liability gives victims the right to sue employers for the damage employees cause while on the clock. An employer can be held liable for an employee’s negligent actions while working (or traveling for work). Vicarious liability puts the liability of an employee on the employer while the employee is serving the employer. If you have employees that drive their cars for your company, read this! Vicarious Liability Of course, when insurance is involved, you can bet it’s complicated so let’s take a look at how and when an employer can be held liable for employee accidents.
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