YOU ASK:

Does company insurance or workman's comp cover car accidents while working?

WE ANSWER:

There are different components that will need to be covered, and each component may be covered by a different type of insurance.

  • For damage to the car that is owned by the employer and is covered by the employer's car insurance policy.

    It doesn't matter whether you are working or not. It depends on whose fault the accident was, especially if you are in a "fault" state. The one at fault will be made liable for paying any damages to other cars and property.

    If it is the employer's fault, he can turn to the liability coverage of his employer's car insurance policy to pay for damages to the other party's car. As for the employer's car, they will need to check on the collision cover and comprehensive cover of the employer's car insurance policy.

  • For damage to the car that the employee owns.

    It will be the employee's car insurance that will cover the damages - the collision or comprehensive cover for damages to the employee's own car and the liability cover for third party property damages.

  • For bodily injuries.

    This is where company insurance or workman's compensation will come in. The employee may actually be covered by more than one policy. The bodily injury cover (in the auto insurance policy) of the employer will be the first in line to pay for medical expenses.

    Also, if the employee exceeds the benefit limits of the employer's policy, the employee can turn to his own medical expenses cover of his car insurance policy to pay for the balance of the medical bills.

    Worker's compensation can then pay for rehabilitation expenses, as well as compensation for the pain and suffering of the employee. Worker's compensation can also be used to pay for lost income, as well as to pay for personal services that the employee used to do - this includes payment for a housekeeper to come and manage the household, childcare or elderly care for the employee's children or parents. But this is only if you get into the accident while you're on your way to or from work or travelling on business.

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