Commercial Auto Insurance and Employee Drivers: Who Is Liable?

When your business depends on employees who drive for work, it is crucial to understand how liability works in Texas. Rules around commercial auto insurance can be complicated, but the appropriate coverage can help your business manage unexpected risks.

Who Is Liable When Employees Drive?

Liability can vary based on who owns the vehicle and the purpose of the trip:

• Company vehicles—If an employee drives a vehicle owned or leased by your business for job-related tasks, your company is generally responsible for accidents or damages that occur. Commercial auto liability coverage can address costs related to injuries, property damage and legal claims.
• Employee-owned vehicles (Non-owned auto)—When employees use their personal vehicles for work tasks such as deliveries or client visits, your business may still face liability if an accident occurs during work activity. A commercial auto policy that includes non-owned auto coverage can help your business handle potential claims.

Why Commercial Auto Insurance Matters

Without proper commercial auto insurance, your business could face significant financial loss if an employee has an accident during work duties. This could include lawsuits and related accident costs that would not be covered by insurance, among other consequences.

Explore Your Options

Amco Insurance Texas City works closely with Texas businesses to assess their risks and recommend suitable commercial auto policies. Contact us today to learn more.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.