Many people drive as part of their daily work routine. Some do so specifically to further the business of their employer. In cases where an at-fault driver was acting in the course and scope of employment, the employer may be found vicariously liable for its employee’s negligence – even if the employer wasn’t in any way directly negligent (i.e., negligent hiring, negligent supervision, failure to properly maintain vehicle, etc.).
However, when someone has permission to use a company-owned vehicle both for work and personal reasons, questions of liability can get complicated.
This was the matter at hand in a recent case weighed by a California appellate court, where the question was whether the at-fault driver’s personal insurer should be liable to pay a $500,000 arbitration award for a crash that happened while the driver was operating a company vehicle, but not in the course and scope of employment. Continue reading