man getting in a company car accident calling his insurance while the injured person calls a car accident lawyer

Suppose you get into a car accident with an individual driving a company car. In that case, who pays for the damages or injuries caused by the accident if it was the employee’s fault? 

For the most part, if an employees’ neglect or negligence leads to an accident resulting in damages, the employer is liable. However, there are exceptions. If you’ve suffered damages due to the fault of an employee driver, you may be entitled to recover damages


Our attorneys are skilled, experienced, and relentlessly pursue maximum compensation for our clients. Contact the best car accident lawyer for company car collisions in Los Angeles today for your free initial consultation. 

When is The Employer Liable? 

Generally, if someone causes an accident, they are the at-fault party. However, under California’s “vicarious liability” laws, third parties (such as employers) can be liable for car accidents. 

That means that if an employee is working AND acting within the scope of their duties at the time of the accident, the employer most likely shares fault for the accident. 

According to a distinguished car accident lawyer at Steinberg Injury Law, California law suggests that an employee acts within the scope of their job if they meet the following conditions at the time of the collision: 

  • The collision happened within the authorized “time and space” limits of the employee’s position. 

  • The employee was in part or fully engaged in work-related activities to the employer’s benefit at the time of the accident. 

  • The employee was authorized and hired to operate a vehicle as part of their job. 


Further, an employer may be directly at fault for collisions caused by employees who are not properly trained, supervised, or vetted during the hiring process. For example, if a company hires a delivery driver with a history of reckless driving charges, the employer may be liable for any accidents caused by that individual. 

It’s important to note that employers are not always liable for accidents caused by employees. Learn more in the next section. 

When is The Employee Liable For A Company Car Accident?

Sometimes, an employee driving a company car causes an accident, but the employer isn’t liable for the damages. Examples of situations wherein the employee may be liable for car accident damages includes but is not limited to: 

  • The employee was doing non-work-related tasks at the time of the accident (i.e., picking up personal dry cleaning). Exceptions may apply if the employee performed work-related and personal tasks simultaneously. 

  • The employee is commuting to or from their job (unless they are required to make work-related stops on the way).

Contact a Los Angeles Car Accident Lawyer Today

Recovering damages for accidents caused by on-the-job employees can be complicated, confusing, and challenging - especially if you’re working alone. Hiring a proven car accident attorney can be the difference between a denied claim and receiving maximum compensation. 

Contact Steinberg Injury Lawyers today to schedule your free initial consultation with an experienced LA car accident lawyer. 

Peter Steinberg
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Los Angeles Personal Injury Attorney Since 1982
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