Service tech in accident with dealership car

What is the name of your state?What is the name of your state? New Jersey
A friend recently started a job as a mechanic at a Honda dealership in N.J. On his first day of work, after completing work on a new car, he took it for a test drive (as he was told to do). While driving it, he was involved in an accident and the car was damaged (no-one else was involved in the accident). His boss at Honda informed him that he is responsible to pay $2,500.00. I'm surprised because I would think a dealership has insurance for mishaps such as this. Also, thank goodness he wasn't hurt (as he was on the job when this occurred). Please let me know if he is responsible for this payment. Thank you

cindygpink said:

Please let me know if he is responsible for this payment.

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No one can answer your question with the very limited information you have provided.
For example, where did the accident happen?? If it happened near the dealership on a 'real' test drive as a result of his normal work duties, then the dealership would be responsible. However, if he was out joyriding, going to the beach, or otherwise screwing off, then he would be liable. Also, your post says that 'no-one else was involved in the accident', so how DID the accident happen and what WAS he doing??