What Businesses Should Know After a Company Vehicle Is in a Crash

When a company car, van or pickup is involved in a crash, the business behind it often has as much at stake as the driver. Delivery fleets, contractors, sales teams and service companies put vehicles on the road every day, and a single collision can raise questions about liability, insurance and records that many owners have never had to think about. Here is what business owners and managers in Michigan should understand.

The vehicle owner can be responsible, not just the driver

Michigan’s owner’s liability statute, MCL 257.401, makes the owner of a motor vehicle liable for injuries caused by its negligent operation when the vehicle is being driven with the owner’s express or implied consent. For a business, that means a crash involving an employee driving a company vehicle can lead to a claim against the company itself. Other rules can also apply when the driver was acting within the scope of employment, or when a business is accused of careless hiring, training or supervision.

Several insurance policies may be involved

Under Michigan’s no-fault system, an injured person’s own auto insurer usually pays medical expenses and certain wage losses first, regardless of who caused the crash. Claims for pain and suffering generally require the injured person to meet a legal threshold, such as a serious impairment of body function. Those claims are typically made against the at-fault driver and the vehicle owner, which brings in the company’s commercial auto policy and sometimes an umbrella or excess policy. Businesses should know their policy limits and whether employees who drive their own cars for work are covered.

Records matter early

After a crash, some of the most useful information sits in the company’s own systems: GPS and telematics data, dash camera video, dispatch logs, maintenance records, driver files and phone records. Many of these systems overwrite data on a schedule. Once a claim is likely, a business may have a duty to preserve relevant records, and losing them can create problems of its own.

Practical steps for businesses

Keep a written crash procedure in every company vehicle: call 911 if anyone is hurt, get a police report, take photos and collect witness information.

Tell drivers not to argue about fault at the scene or post about the crash online.

Notify your insurance carrier promptly, since policies have reporting deadlines.

Preserve vehicle data, video and maintenance records once a claim is possible.

Review hiring, training and maintenance practices, since these often come up in later claims.

For people hurt by a company vehicle

For someone injured by a work truck or company car, the same rules shape the claim from the other side. Who owns the vehicle, how it is insured and what records exist can all affect what compensation may be available. Telematics data and camera footage can be lost if no one asks for them early.

Michigan personal injury firms such as Khamo Law, with offices in Troy and Sterling Heights, explain how these claims work and offer free consultations.

This article is general information, not legal advice. Every situation is different.