Office printers have a remarkable ability to run out of paper at precisely the wrong moment. You’ve run out of paper, and you need to get a document out today. Your employee goes to buy more and, in his rush to get back, rear-ends someone, causing injuries to himself and to the other driver. Is your business responsible for your employee’s damaged vehicle and medical bills? What about the other driver’s losses? What if your employee can’t work because of his injuries? Suddenly, picking up printer paper has become considerably more complicated than anyone anticipated.
Have you checked your coverage?
Planning ahead for unexpected challenges is an important part of running a business. If your business does not carry liability insurance with bodily injury, property damage, medical payments, and auto coverage, connect with one of our local insurance agents to review your options. The goal is to make sure your insurance covers the way your business actually operates.
Also, if you are regularly sending employees on errands using their personal vehicle, it would be prudent to confirm their vehicle liability coverage, which is listed on their declarations page. The minimum required liability insurance in Washington is $25,000, but higher policy limits offer better protection.
Was my employee on the clock?
This can be a complex legal question, but an employee running a company errand is generally acting within the scope of employment. If he causes a collision, the employer can be held legally and financially liable for the other driver’s injuries and property damage. The errand may be unofficially classified as just a quick favor, but that is not a legal category. This is where having the right business liability insurance becomes essential. How this scenario integrates with Washington’s wage and hour laws is a topic for another day.
What about my employee’s injuries?
In Washington, when your employee is injured on the job, the employee is entitled to workers’ compensation benefits through the Department of Labor & Industries, regardless of who caused the accident. L&I benefits can include medical care, wage replacement, and return to work support. Washington law requires almost all employers to carry workers’ compensation insurance. If you are not paying L&I premiums, it’s worth checking whether your business is required to have this coverage. Penalties for not providing L&I insurance to employees are significant.
Your injured employee may also be covered by the federal Family and Medical Leave Act and/or Washington’s Paid Family and Medical Leave. These programs come with important responsibilities for employers. An HR specialist or employment attorney can offer guidance on what your business needs to do if your employee cannot return to work due to a medical condition.
The Bottom Line
Most of us did not start a business because we love paperwork and insurance policies, but addressing potential liabilities now can give us more time to focus on the work we enjoy. And while you’re at it, check the printer paper supply – you might save someone a trip.
A Kitsap native, Ashley Armstrong has been practicing law for more than 20 years. She owns Armstrong Injury Law in Old Silverdale, where she and her team help injured people and their families navigate the legal process. This article is for general informational purposes only and is not legal advice. Consult an attorney for guidance about your specific situation.
