Your company may require employees to drive for work. What happens if they’re injured in a vehicle accident? Workers’ Compensation can provide benefits to help employees recover and help protect your business from certain costs.
Define Work-Related Driving Jobs
Workers’ Compensation rules vary by state, but most states provide benefits when an employee is injured while performing work-related duties.
In general, employees are covered if they are driving a company car or using their personal vehicle for work tasks such as:
- Making deliveries or running errands.
- Transporting another employee.
- Driving to or from a work site.
- Traveling for work.
- Performing sales duties without a fixed office.
- Receiving travel time pay as part of their benefits.
Accidents that occur during an employee’s ordinary commute or during an unpaid lunch break are usually not covered, though there are exceptions when the employee runs an errand for the employer or buys company supplies during the commute.
If your business operates repair or service locations, review Automobile Repair Workers Compensation to ensure your policies match operational risks.
Review Personal Injury Claims
If another driver causes the accident, the injured employee may file a personal injury claim against that driver’s auto insurance or, in some cases, pursue a lawsuit according to state time limits.
A successful personal injury claim can compensate medical bills, lost income, pain and suffering, and vehicle damage that Workers’ Compensation may not cover.
How to File Workers’ Compensation for Auto Accidents
An employee who is injured in an auto accident while performing work duties should report the injury promptly and file a Workers’ Compensation claim according to your company’s policy and state requirements.
Workers’ Compensation typically pays for qualified medical care and a portion of lost wages while an employee recovers, regardless of who was at fault, provided the injury occurred during work-related activity and the employee was not committing a crime or impaired by drugs or alcohol.
Employers that rely heavily on vehicle operations should consider industry-specific coverage such as Auto-Related Business Workers' Compensation to address unique risks and exposures.
If an employee also pursues a third-party claim, the employer’s Workers’ Compensation carrier may place a lien on benefits and seek reimbursement for amounts it paid.
Review your company’s specific Workers’ Compensation policy and reporting procedures, and if you have questions, talk to an agent.
Frequently Asked Questions
Are accidents during a normal commute covered by Workers’ Compensation?
Most states do not cover ordinary commutes, but there are exceptions when the employee is performing a work task during the commute, such as stopping to buy supplies for the employer.
Can an injured employee pursue a claim against a negligent third party?
Yes, employees can file a personal injury claim against a negligent driver in addition to a Workers’ Compensation claim, though reimbursements and liens may affect settlements.
Will Workers’ Compensation pay to repair the employee’s vehicle?
Workers’ Compensation generally covers medical expenses and wage replacement, not vehicle repairs; vehicle damage is usually handled through auto insurance or a third-party claim.
What if the employee was intoxicated or committing a crime at the time of the accident?
Most Workers’ Compensation policies exclude injuries that occur while an employee is intoxicated or engaged in criminal activity, so those claims may be denied.