How Do You Deal with Legal Issues Involving Company Vehicles?

Dealing with legal issues related to company vehicles is crucial for effective business management. It requires a keen understanding of liability, compliance with regulations, and a proactive approach to risk management. 

In this blog, we’ll delve into effective strategies for navigating these challenges and ensuring your company’s fleet operates smoothly and within legal boundaries. Join us as we explore the essential aspects of managing company vehicles, a task that is vital for maintaining the integrity and efficiency of your business operations.

Employer Liability in Company Vehicle Use

Employers can be held liable for employee’s actions in the course and scope of their work duties. This falls under the legal principle of respondeat superior. This form of vicarious liability applies even when employees use personal or company vehicles for work. 

Situations where employer liability may arise include:

• Employees causing accidents while driving for work purposes;
• Employees allowing unauthorized personal use of company vehicles
• Employee vehicle negligence occurring outside of work hours

Given the 97% surge in personal injury filings in 2020, employer liability has become an increasingly pressing issue.

Key Legal Arguments in Vehicle Lawsuits

Several key legal concepts form the underpinnings of many vehicle-related legal actions. Understanding these core arguments is vital to building robust defenses:

Respondeat Superior 

This concept is the primary basis for holding employers liable for employees’ negligent actions if done as part of their job duties. Plaintiffs argue that “negligence is considered the negligence of the employer.”

Even when employees use personal vehicles for work purposes, it can trigger this form of vicarious liability. Lack of express permission for a specific trip does not exempt employers from liability if it reasonably aligns with the employee’s role.

Negligent Hiring

Means the employer failed to exercise reasonable care in selecting and screening an employee. This employee later caused an injury due to unsafe driving. Arguments focus on proving there were reasonable signs during hiring. It shows that the person could operate vehicles negligently or unsafely.

Thorough background checks assessing driving records are key to countering such claims. If you live in South Carolina, you can find a renowned car accident lawyer in Myrtle Beach. They can give you legal advice on these matters so you can prevent them before they happen. If it has already occurred, they will help ensure that your company does not suffer significant damages caused by your employee.

Negligent Entrustment 

This alleges the employer enabled an unfit, incompetent, or reckless employee to drive a company vehicle. As a consequence, it resulted in damages. There is a key distinction between negligent hiring and entrustment. The latter focuses on assigning company cars without adequate assurance of safe use.

Documented vehicle assignment protocols help defeat such lawsuits. 

Negligent Maintenance

The employer is accused of failing to maintain vehicles as per accepted standards. It then leads to malfunctions, breakdowns, and accidents. The allegation is that the incident could have been prevented. The employers had to take reasonable care to uphold maintenance schedules and processes.

Meticulous vehicle servicing records rebut this charge.

Fully grasping these core legal arguments sets the stage for mounting robust rebuttals. They’re especially useful when lawsuits emerge.

Strategies to Mitigate Legal Risks

Proactive strategies to limit risks around company vehicle use include:

• Implementing clear vehicle use policies to cover many issues. Qualifications, allowances, restrictions, safety requirements, and disciplinary actions are some of them.
• Conducting thorough background checks on prospective drivers, including DMV records examination
• Regular employee reviews and continuous behavior monitoring are needed to identify problems early

These well-structured approaches help mitigate risks from the outset.

Addressing Specific Liability Issues 

Beyond broad strategies, targeting specific liability triggers is key:

Respondent Superior Scope

Strict policies ensure employees don’t use company cars for personal reasons without authorization

Negligent Hiring Prevention 

Thorough vetting of driver histories pre-hiring using DMV records and reference checks

Negligent Entrustment Avoidance

Protocols that limit vehicle access to employees whose roles require driving

Vehicle Maintenance Standards 

Regular upkeep schedules as per manufacturer guidelines 

Addressing these specific issues reduces legal exposure.

Building Strong Legal Defenses

The best strategy against company vehicle lawsuits involves building sturdy legal defenses. They must refute the plaintiffs’ key arguments:

• Challenging allegations around respondent superior. They prove the employee acted outside the scope of duties without authorization when the incident occurred.
• Providing documentation of diligent hiring protocols. This includes DMV background checks and reference verifications to show reasonable care. 
• Presenting access policies and records show vehicles were entrusted only to qualified employees.
• Showing servicing adherence through maintenance schedules and precise vehicle repair records.

Additional impactful defenses include:

• Disposing of exaggerated injury claims through independent medical evaluations.
• Countering unreasonable damage demands by presenting realistic cost data. 

Securing legal counsel specializing in this area gives companies the best chance of successfully defending against vehicle-related lawsuits. It effectively deploys these defenses.

Have air-tight documentation validating vehicle policies and protocols. Companies can potentially invalidate the plaintiffs’ primary arguments or, at the very least, negotiate favorable settlements.

Insurance Considerations 

Vehicle insurance is crucial in offsetting financial risks, as the average expenditure was $1,047 in 2020. Policies covering employee use of personal and company cars are essential. Louisiana saw the highest premiums, averaging $1,495.

Effective Policies for Vehicle Usage

The final piece lies in implementing and enforcing clear company vehicle policies. They address issues like:

• Driver eligibility standards
• Approved use parameters 
• Safety protocols
• Maintenance schedules
• Disciplinary responses 

Design practical policies informed by data from the Fatality Analysis Reporting System (FARS). This enhances safety and legal protection.

A multi-layered approach spans the following: 

• Risk mitigation strategies
• Targeted liability resolution
• Robust legal defenses
• Adequate insurance
• Structured policies

It helps companies effectively address the rising legal issues of employer liability. Said issues are related to company vehicles.

FAQs

What constitutes “scope of employment”?

Any use of a company vehicle authorized by the employer through policies and past precedents. This may have been given explicitly or implicitly. Personal usage requires clear, documented permission.

What proves diligent hiring?

Thorough, documented screening procedures examine driving records and references. They use DMV and background checks.

What are vehicle maintenance best practices?

Routine upkeep per manufacturer guidance, with precise schedules and full documentation.

Address this issue comprehensively, covering prevention, defense, and policy. This approach enables organizations to minimize their liability exposure associated with company vehicle use. What specific aspects will you prioritize to strengthen your legal risk management strategy?

Conclusion

Dealing with legal issues alone can be a headache, aside from being daunting. But with the aid of skilled attorneys, you’ll be knowledgeable about handling those kinds of problems. Doing research online has its merits because you will be equipped with basic knowledge. But professionals offer more in-depth insight into the different problems you may face.

With that said, there’s much to know about the legalities surrounding company vehicles. Hence, before you authorize its use by anyone, be sure to consult with your attorney. You can also establish guidelines and other standards that employees must satisfy. In effect, your business can avoid being involved in any legal issues regarding your company’s use of vehicles.