Call Us : (630) 325-4000
Call Us : (630) 325-4000
As Illinois business owners, we understand that our operations often extend beyond our offices, warehouses, or retail spaces. Sometimes, our work takes us , or our employees , onto the road. Whether an employee is delivering goods, visiting a client, or running errands for the business, the act of driving for work purposes introduces potential risks that can have serious financial and legal consequences.
One of the most important questions we ask ourselves is: if an employee causes an accident while driving for work, are we liable? The short answer is yes, under certain circumstances. Illinois law recognizes a legal doctrine called respondeat superior, which can hold employers responsible for the actions of employees when those actions occur within the scope of their employment. This means that even if we were nowhere near the accident scene, our company could still face liability.
Under Illinois law, if an employee is acting within the course and scope of their job duties , for example, making deliveries, visiting clients, or transporting equipment , our business may be responsible for damages if they cause a traffic accident.
The key legal principle comes from Illinois common law rather than a single statute, but it’s reinforced in the way courts apply respondeat superior. If the employee’s actions are tied to their work responsibilities, liability may fall on us as the employer. This includes covering property damage, medical bills, and potentially even non-economic damages like pain and suffering.
Not all driving situations lead to employer liability. For example, if an employee is commuting to or from work in their personal vehicle, we are generally not liable unless they are performing a work duty during that commute. Similarly, if an employee takes an unauthorized personal detour during work hours and gets into an accident, our liability may be reduced or eliminated.
The challenge is that “scope of employment” is not always black and white. If an employee combines a personal errand with a work task , something courts call a “frolic and detour” , liability can hinge on whether the primary purpose of the trip was business-related.
If our business owns the vehicle the employee was driving, the risk of liability is more direct. The company’s commercial auto insurance will typically provide coverage, but the extent depends on our policy limits and terms.
If the employee was driving their own vehicle for work purposes, our liability risk still exists. In these cases, our business may need non-owned auto liability coverage, which is designed to protect us when employees use personal vehicles for company business. Without this coverage, we could be financially exposed even though we didn’t own the vehicle involved.
The most effective way we can protect our company from these risks is by having the right business auto insurance in place. This includes:
Failing to carry the right insurance could leave our company paying out of pocket for legal defense and settlement costs.
If an employee is involved in an accident while driving for work, we need to act quickly. This means reporting the incident to our insurance carrier, documenting the circumstances, and ensuring our employee does not admit fault before an investigation. Early involvement of insurance professionals can help protect our interests and reduce the risk of costly litigation.
We are liable when the employee was driving within the scope of their employment. This includes tasks such as making deliveries, traveling between job sites, or visiting clients on company time. Liability generally applies whether the vehicle was company-owned or personal, as long as the driving was work-related.
Yes. Even if an employee uses their personal vehicle, if they are performing work duties, we can still be held responsible. This is why non-owned auto liability coverage is critical for Illinois businesses.
Respondeat superior is a legal doctrine that holds employers responsible for the actions of employees when those actions are performed within the scope of employment. In driving cases, this means we could be liable for an accident caused by an employee if it happened during work duties.
Generally, if the trip was purely personal, we are not liable. However, if the employee was also performing a work-related task , for example, picking up office supplies on the way to lunch , we may still face liability.
Yes. If the employee is injured while driving for work purposes, they may be entitled to workers’ compensation benefits under Illinois law. This is separate from any liability our business might face toward third parties injured in the accident.
No. Liability insurance is designed to cover accidents where our employee was at fault. However, claims can be denied if the accident involved excluded activities, such as illegal conduct or use of a vehicle not covered under the policy.
We should consider commercial auto insurance, hired and non-owned auto coverage, and umbrella liability policies. Together, these policies provide broader protection against claims that could financially damage our business.
As Illinois business owners, we cannot afford to ignore the risks associated with employees driving for work. Even one accident can result in significant liability, legal expenses, and reputational damage. At SIA Insurance Group, we help businesses throughout Illinois understand their coverage needs, minimize risk, and protect their bottom line with the right insurance solutions.
Call us today at 630-325-4000 to receive a quote to speak with a dedicated insurance professional and review your current policies. We proudly serve businesses across the state of Illinois and can help ensure you have the protection you need before an accident happens.
Become a leading distributor of fully integrated Risk Management services to the small and middle market.