Tony, a construction foreman, was driving his pickup truck filled with work materials from one jobsite to another when he got in a fender bender.
Both vehicles were drivable and it didn’t seem like either driver was injured. They were both in a hurry, so they exchanged names and telephone numbers and drove away.
But as Tony left the scene, he wondered if he should have waited for a police officer to file an official report. Also, should he have taken more information from the other driver like his insurance company or license plate number? And after he arrives at work, should he tell someone about the accident?
The answer to all of those questions is yes.
When is an automobile accident covered by workers’ compensation?
Generally, motor vehicle accidents that occur when employees are traveling to and from the workplace are not covered by workers’ compensation, but there are two exceptions:
- If employees are required to bring their cars to the office for use during the workday, travel to and from the office and business travel during the day are generally covered by workers’ compensation.
- If you regularly provide transportation to and from the workplace in company-operated vehicles — like buses, trucks or vanpools — injuries to employee passengers would be covered by workers’ compensation.
Even if you’re unsure whether an automobile accident is covered by workers’ compensation, it’s best to report it to your workers’ comp insurer.
Who pays? Auto insurance or workers’ comp carrier?
If an employee is injured in a car accident on the job, worker’s compensation is the primary source of insurance for medical and wage-loss benefits.
What to do in the event of an automobile accident
If you have employees who drive for work, let them know what to do if they are in an accident:
1. Call for help.
Of course, call an ambulance immediately if anyone is injured. Even if there aren’t injuries, it’s best to call local law enforcement to the scene to file a police report and issue any citations. If this isn’t possible, make a legal accident report with the police department as soon as possible.
2. Obtain key information.
Find out:
- Names, addresses and phone numbers of witnesses and everyone in each vehicle.
- License numbers and state registrations of all vehicles involved.
- Insurance information from the other driver.
3. Report it to the employer.
Immediately report the accident to the person in the organization who handles workers’ compensation claims.
What if the employee wasn’t at fault?
If the other driver was primarily at fault, it’s usually possible to recover workers’ compensation benefits paid from the negligent driver’s personal auto insurance carrier.
In many cases we are able to recover 100 percent of the worker’s compensation benefits paid, but there are often situations that restrict us to recover only a portion of our total paid. The reasons for this include:
- Some states have statutes that allow the employee’s personal injury attorney to take the first third of the settlement.
- The other driver might not be 100 percent at fault, and so the employee bears some responsibility.
- Not all workers’ compensation benefits are recognized by auto insurers. For example payments for rehabilitation services are often questioned by liability carriers because this is not a standard benefit paid under a liability claim in many states.
- The driver’s auto insurance policy limits might be less than the amount of incurred workers’ compensation benefits.
Preparation is key
Hopefully you and your employees won’t ever have to worry about dealing with a car accident, but it’s always best to be prepared.
Making sure your employees know what to do in the event of a collision can save you, and your employees, major hassles down the road.
This is not intended to serve as legal advice for individual fact-specific legal cases or as a legal basis for your employment practices.
