What Happens If Your Commercial Vehicle Is Involved in an Accident?

After a commercial vehicle accident, you’ll want to contact the police and ensure you document details about the accident, including any injuries or damages. These will be essential for determining who was liable for the accident and filing a claim with your commercial auto insurance provider.

Keep reading to learn more about commercial vehicle accidents, including what can cause them and how to keep them from happening.

On This Page

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  What Is Considered a Commercial Vehicle Accident?

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  Who Is Liable in a Commercial Vehicle Accident?

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  What Steps Should My Company Take if Involved in a Commercial Vehicle Accident?

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  What Types of Insurance Cover Commercial Car Accidents?

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  How Can a Business Prevent a Commercial Vehicle Accident?

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  What Are the Most Common Causes of Commercial Vehicle Accidents?

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  FAQs

What Is Considered a Commercial Vehicle Accident?

A commercial vehicle accident is any collision with a vehicle used to transport goods or conduct business, even if the car is registered in an individual’s name. Commercial vehicles can include semi-trucks, delivery trucks, buses, taxis and other vehicles used for business. 

Who Is Liable in a Commercial Vehicle Accident?

Depending on the accident's circumstances, one or multiple parties could be held liable in a commercial vehicle accident.

Your Business

If your driver is at fault for an accident — they were speeding or driving distracted, for instance — your company could be held liable and required to pay for damages. Even if the driver acted negligently, the responsibility may still fall on the company rather than the individual employee, especially if the driver performed work-related duties at the time. This is because companies are legally obligated to properly train their drivers and enforce safety policies to prevent accidents.^[1]

The Car Manufacturer or Mechanic

The manufacturer or mechanic may also be liable, such as if you bought a new company car from a batch with defective parts or if a mechanic accidentally made incorrect repairs that contributed to the accident. In this case, you would still have to rely on your policy’s liability insurance to pay out any damages and then your insurer would attempt to recoup this amount from the actual liable party through a process called subrogation.^[2]

The Other Driver

It could be the case that the other driver was entirely at fault — they were speeding or ran a red light, for instance. Under these circumstances, the other driver’s auto insurance policy should pay toward your company vehicle’s damages and any injuries you or your employee sustained from the auto accident.

Multiple Parties

Multiple parties could be held liable, such as your employee who fell asleep behind the wheel and the other driver who was going 20 mph over the speed limit. Depending on your state, each driver would be held liable for a percentage of the other driver’s losses.^[3]

What Steps Should My Company Take if Involved in a Commercial Vehicle Accident?

Your company should first determine the extent of any damages or injuries, which will be essential to submit to your insurance later. Have all parties move their vehicles to the side of the road or another safe area that doesn’t block traffic, potentially leading to further accidents. 

If your commercial vehicle carries hazardous materials, your employee and any accident victims should leave the accident scene immediately and call law enforcement.^[4]

Ensure you contact law enforcement and get a copy of the police report of the accident scene, including any statements about serious injuries from employees or other accident victims involved in the collision. Have yourself or the driver at the accident scene take photographs of any injuries or damage so you have a record of it. You will also need to exchange contact details and insurance information with the other party in the accident.

Afterward, you should inform your commercial auto insurance company of the accident. They will walk you through the claims process, including providing details you gathered, like photographs and, later, a copy of the police report. It may also be worth performing an internal review and investigation as to the cause of the accident and either discussing with the driver means of avoiding further accidents in the future, improving driver training courses or taking other measures.

What Types of Insurance Cover Commercial Car Accidents?

All commercial auto insurance policies include liability coverage, meaning you will be covered for liability expenses if your company can be held responsible for causing an accident. You will also be covered for other scenarios depending on what coverage you buy — some of which may be included or optional:

• Bodily injury liability: This covers another person’s injuries or fatalities resulting from an at-fault accident.
• Property damage liability: This covers damages caused to another person’s property by your vehicle.
• Medical payments or personal injury protection (PIP): This insurance coverage helps pay for your and your employees' medical costs, lost wages and funeral expenses after an accident, regardless of who was at fault. This coverage is required in some states.
• Uninsured/underinsured motorist: This provides coverage for injuries and may cover property damage when the at-fault driver doesn’t have car insurance or doesn’t have enough coverage. It may also cover hit-and-run drivers.^[5] This coverage is required in some states.
• Collision: This covers damages to your commercial vehicle when hit by another object. This coverage is optional but usually required if you’re financing or leasing your commercial vehicle.
• Comprehensive: Comprehensive insurance covers your car against non-collision physical damages, such as fire or vandalism. Like collision insurance, you will likely need comprehensive coverage if you’re financing or leasing your car.
• Hired and non-owned: Covers you for liability if in an accident in a car that is personally owned, rented or leased and is being used for business purposes. Keep in mind that this type of coverage may not cover damages to the hired or non-owned vehicle.^[6]
• Tractor trailer insurance: Insures your company tractor trailers and cargo they contain against physical damages and for liability.
• Non-trucking liability: If you or your employee is driving a company truck for personal reasons, such as transporting furniture from a store, this coverage will pay toward liability expenses if you are the at-fault driver in a car accident.

Additionally, workers' compensation insurance may cover employees injured while actively driving on the job, such as driving between job site locations.

How Can a Business Prevent a Commercial Vehicle Accident?

The best way to prevent a commercial auto accident is to be proactive and teach drivers how to drive more safely. Consider participating in a driver’s safety training program, which can help teach vehicle inspection routines, driving regulations and defensive driving techniques. Training can also help inform drivers what to do when an emergency occurs on the road, such as if they get a flat tire or their brakes cut out.

It may also be worth utilizing telematics, which can give you direct access to your driver’s performance through technology like GPS tracking and onboard sensors. Telematics can point out areas for improvement for drivers, such as driving over the speed limit or too close to other cars. It can also help you track their driving time, ensuring they take mandated breaks.

If you’re working with a fleet of drivers, you should perform rigorous background checks on new employees to check if they have a history of accidents on their driving record. In addition to potentially raising your commercial insurance premiums, a recent history of reckless driving may indicate a potential new driver is at risk of getting into an accident. While training programs may help, it’s worth weighing the risk of hiring them.

What Are the Most Common Causes of Commercial Vehicle Accidents?

The causes of commercial vehicle accidents can vary, often depending on the type of vehicle and business being done, which we’ll discuss below.

Accidents Caused by the Driver

Fatigue can commonly result in commercial vehicle accidents, with drivers either falling asleep at the wheel or their drowsiness reducing their reaction time. For example, if another car quickly merges in front of your exhausted driver, they might not have the reaction time to stop before rear-ending them. Driving while distracted, such as using a cell phone to text or call, could also lead to an accident.

Drivers may also make poor judgment calls, thinking they can drive through inclement weather to meet their delivery time even though it's unsafe. They might also speed or engage in risky behaviors like running a red light. Some drivers may engage in alcohol or drug abuse, which hampers decision-making while on the road.

Accidents Caused by the Vehicle

Vehicles experience wear and tear over time, and various parts may break or need repair. For example, a company van that hasn’t been to a repair shop recently may have thinning tire treads that could pop on the road, leaving the van to swerve into a nearby car.

Accidents Caused by the Environment

Poor road conditions due to inclement weather can result in accidents. For example, heavy rain or snow could blind drivers or cause heavy trucks to drift and skid on the slick road. Roads themselves may be poorly maintained, lined with potholes or obstructed by debris.

Routes with downed trees or powerlines or rockslides could potentially lead to an accident if a driver runs into them or tries to maneuver around them into other lanes of traffic.

Accidents Caused by Administration

In some cases, it’s ultimately the business’ fault for an accident or for failing to put sufficient safety or maintenance policies in place. For example, if trucking companies don’t accurately keep records of their driver’s maintenance to know how long it has been since a vehicle has been checked, a crash caused by a preventable mechanical failure may be the company's fault.