Expert: Ron Cercone - 7/6/2009

Question
I was in an accident with a company vehicle the other night, and I was clearly at-fault. Little damage, if any was done to the company van I was driving but the back-end of the car which I hit was damaged. The driver and I exchanged telephone/liscense plate numbers but the police were not called. The driver of the other car had an estimate done and reported the damage being around $4,000. If the driver makes a claim on my company's policy, when and how will my employer be notified? Also, how will it affect their policy? Will the other driver even be able to win the claim since a report was not made? I am trying to decide whether to notify my employer or to pay out of pocket.
Thanks!

Answer
Hello Susan,

Unless you pay the other drivers damages, eventually your employer will find out about the accident. The other driver can have the state DMV or the police tell him/her who owns the van you were driving and then contact your employer, and if your employer fails to turn in the claim, then your employer may get sued.

Only your employer or his agent knows if his premiums would go up on account of a $4,000 claim. You could just ask him what he would like to see you do. But then if you fear he might fire you, that's another consideration.

I'm an adjuster, not an agent or underwriter. Consider calling a large independent agent (other than your employer's agent) in your area and asking him his experience with commercial business auto policies. Its possible that the more vehicles insured, the less of an impact one accident would make on premiums.