In a case that could impact employers whose employees use their own vehicles for work, the California Supreme Court granted review to address whether an employer’s insurance policy covered a deadly automobile accident caused by an employee driving his own car. American States Ins. Co. v. Ramirez, No. S205073 (Cal. Oct. 24, 2012). Although this case is still pending, it should remind employers whose employees drive personal vehicles on company business to evaluate with their insurance brokers whether to obtain insurance coverage covering accidents that occur while the employees are working since the employer is likely to be sued.
Employers should also recall that if an employer requires employees to insure their cars for more than the statutory minimum level of insurance, the California Division of Labor Standards Enforcement takes the position that employers must reimburse employees for those expenses under Labor Code Section 2802. We will continue to provide updates regarding the California Supreme Court’s review of the case as appropriate.