Legal Question in Business Law in California
Employment/Auto Insurance with a twist...
In a nut shell: I work for a company that requires me to visit clients. Because of cost of living reasons, I�ve got auto insurance through my girlfriend. For the past few months my employer has been pressuring me to add his company as �Additional Insured� to my girl�s auto insurance. Thus far my girl has been extremely resistant to this� Not sure I blame her. On my boss�s last email about this matter; he gave me the impression that he felt that I was jeopardizing his company. I can�t afford to lose my job (and since half of my salary comes from the work I do at location) or my clients but this �request� smacks as� well� slimy. Now the questions: 1) Like the auto insurance policy, the car I drive is under my girl�s name. I work for the company in question but my girl does not. When driving to a client and I�m not on the �clock� (e.g. driving from home to a client). If I get into a traffic accident can the company I work for be liable? 2) Sort of the same as my first question but my starting point is at a hotel� I get into an accident while driving from the hotel to a client, is the company I work for liable? 3) OK, how about if I get into an accident while going to lunch, is the company liable for that? Thanks In Advance!
1 Answer from Attorneys
Re: Employment/Auto Insurance with a twist...
This is an unusual arrangement, to say the least. I'm immediately suspicious that, perhaps, you have a very poor driving record, have a suspended license, or something of this sort, bit I'll assume for purposes of answering this question that you've given LawGuru ALL the applicable facts.
First, if there is an accident, ownership of the car will not be nearly so much an issue in court as who was behind the wheel.
Second, your employer is absolutely right in asking you to name the company as an additional insured in YOUR policy. You need to have your own insurance policy and add the employer as an additional named insured. There is nothing "slimy" about this. If you were in an accident during the "course and scope" of employments, the employer would be liable, as well as you. You are driving in the "course and scope" of employment when heading from home to a client's location; from a hotel to the client's location; from home to the hotel; while taking the client to dinner or a baseball game; while driving home from the saloon where you and the client were having drinks; and on and on.
I'm not sure about the "going to lunch" question; if you were alone and doing nothing work-related, this might not be considered "course and scope" of employment driving, but I'd have to research it to be sure.
Finally, keep in mind that if you are relying on the girlfriend's insurance as well as her car, there is no certainty that you are covered even while driving on you personal business, to say nothing of company business. Is the insurer aware that you are a frequent driver, and that your use of the car is (at least primarily) for business, not personal, trips?
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