Driver liability re business-owned vehicle?

[jstjohnz]

What is the name of your state? Indiana

My son was at fault in a $5,000 property damage accident while driving his employer's vehicle on business. On the accident report, he supplied the insurance information given to him buy the business.

He was recently contacted by a representative of the other driver's insurance company. Apparently the business cancelled their auto insurance 2 days before this accident. Some time after the accident, the business declared bankruptcy.

The other driver's insurance company is threatening to sue my son for the $5,000, and is also claiming that his license will be revoked if he doesn't pay.

He is listed on my insurance policy, but I don't think it would cover a business-owned vehicle being driven for business. It just seems wrong to me that he could be liable for this even though it was the business who was clearly at fault for not having coverage.

We are wondering how to proceed with this, any comments or suggestions would be appreciated.

-jim-

 

[seniorjudge]

Q: The other driver's insurance company is threatening to sue my son for the $5,000, and is also claiming that his license will be revoked if he doesn't pay

A: That is correct. The business, by not having insurance, did not cause the wreck. Your kid did. He is liable.

 

[jstjohnz]

Q: The other driver's insurance company is threatening to sue my son for the $5,000, and is also claiming that his license will be revoked if he doesn't pay

A: That is correct. The business, by not having insurance, did not cause the wreck. Your kid did. He is liable.

I don't think the presence or lack of insurance by the business changes the liability. In Indiana, it is my understanding that the primary liability is with the owner of the vehicle.

In a sense, I guess, I am asking how a driver protects himself against this type of exposure? If a personal auto policy excludes coverage for business use of business-owned automobiles, how can any employee ever drive a business vehicle without exposing himself to liability in the event that there is some problem with the company's insurance coverage?