There’s nothing worse than when a business has to stop all operations. Sure, to an innocent bystander, this may seem like nothing more than an opportunity for employees to get some rest, but the reality is different.
Stopping business operations often results in profit loss and puts additional strain on employees. But why do these halts happen? And can they even be prevented?
When we think about business interruptions, we often imagine cybersecurity breaches, natural disasters, or supply chain delays. But one everyday risk is often overlooked. Facing legal business issues from accidents that happen during daily operations can be just as disruptive, if not more so.
Something as simple as a car accident involving an employee can totally disrupt business.
Your delivery driver or technician on a service call can easily get into a car accident, and that’s when you, as a business, find yourself wishing you’d thought about legal support and insurance before it’s too late.
In a world where speed and reliability are crucial, a single collision can create a ripple effect(and it often does). It may not always end in a business interruption, but it can affect schedules, customer satisfaction and result in high insurance costs.
That’s why your business continuity plan needs to account for what happens when an employee is involved in a motor vehicle accident during work hours.
Unexpected situations
Let’s say your top technician in Phoenix is on their way to a client’s site when another driver runs a red light and causes a crash. Your employee is injured, the company vehicle is completely ruined, and the tools needed for the job are scattered across the intersection.
And this is quite a realistic scenario, as more than 1,000 car accidents happen because someone fails to stop at a red light.
So, not only does the technician miss the appointment, but he may be out of work for weeks. That means you have to find a replacement, conduct interviews, and all of which affect the everyday operations.
Plus, if the company car wasn’t insured, there’s a whole new legal problem to address. In that case, you’ll definitely need to hire a car accident attorney to get you out of the mess.
To simplify post-accident workflows, businesses should consider using Insurance Claims Management Software. It helps streamline documentation, track claims in real time, and reduce delays in settlements that can affect operations.
In Arizona, where so many businesses depend on vehicle-based services, accidents like these are more common than you might think.
That’s why smart business owners include legal counsel as part of their response strategy.
What’s your responsibility as an employer
The lines between personal and professional liability can become blurred quickly after an accident. If the vehicle involved is owned by the company, you’re likely responsible for damages and injuries.
But even if your employee uses their car for work duties, which is quite a common setup in states like Ohio or Missouri, you could still be held liable under the legal principle of “vicarious liability.”
That’s why you need to have clear policies before it even comes to that. You need to establish when and how employees can drive for work.
You should also verify insurance coverage. For instance, you might want to check if it covers interstate accidents or not.
How an accident affects business continuity
Accidents don’t just cause physical damage; they create operational uncertainty. How so? Well, first of all, in customer-centered businesses, even a short delay can harm your reputation. Customers dislike having their deliveries late, even if it’s for a good reason.
Additionally, injured employees may need extended time off, which means some of your employees will probably have to work a bit more.
On top of that, your employee can file a claim or raise a dispute, and then you’ll have a legal problem to deal with.
Continuity plan basics
How does one approach a continuity plan? Your business continuity plan should do more than cover technology outages or severe weather.
It should also outline procedures for handling accidents involving company employees. The first thing you’ll need is emergency response protocols. Who will your employees contact at the scene? HR or supervisors? You need to set the rules.
Also, make sure to establish a consistent process for gathering incident details, photos, and contact info. All of your employees should also be aware of the insurance policy they have and the relevant contact numbers as well.
As an employer, you also need a legal advisor who will step in these kinds of situations and provide guidance.
For businesses in larger states like Texas or Florida, where employees may cover long distances daily, it’s even more important to have localized response plans tailored to each region’s legal environment and driving conditions.
Prevention is key
The best approach is to focus on prevention. While you can’t stop every accident, there’s a lot you can do to reduce their likelihood and impact. Regular safety training for drivers is essential it reinforces the basics and helps minimize risks. As an employer, raising awareness about potential dangers is key, especially when facing legal business issues that can arise from preventable incidents.
Your drivers need safety training from time to time, just to remind them of the basics of driving safely. Additionally, as an employer, you should try and raise awareness about the issue and the potential dangers.
The final word
Putting a pause on business operations is never an easy decision, but sometimes it’s out of your hands. Car accidents are never convenient, but they don’t have to bring your business to a standstill. You need to plan, set clear rules, and also make sure that your employees are aware of what to do in case they end up in an accident. Also, a refresher course in safe driving would not hurt. Make sure to organize these kinds of workshops to remind your employees of the responsibility you all share.
