---
title: What is the liability of a Pennsylvania business if an employee causes an accident while driving a company vehicle?
description: Legal Faqs explores the liability of Pennsylvania businesses in the event that an employee causes an accident while driving a company vehicle. Learn about the legal ramifications and potential consequences for negligence. Don't let your business be caught unprepared.
image: https://www.legalfaq.ai/hubfs/LegalFAQ/pennsylvania-legal-faqs.jpg
---

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 March 24, 2023

# What is the liability of a Pennsylvania business if an employee causes an accident while driving a company vehicle?

![Picture of Chris Battis](https://www.legalfaq.ai/hs-fs/hubfs/battis-mug.jpg?width=50&name=battis-mug.jpg) By  [Chris Battis](https://www.legalfaq.ai/faqs/author/chris-battis)  ·   1 minute read

Under Pennsylvania law, an employer can be held liable for injuries or damages caused by an employee’s negligence if the employee was acting within the scope of their employment at the time of the accident. This is known as “vicarious liability” or “respondeat superior.” As such, if an employee causes an accident while driving a company vehicle, the employer may be held liable for any damages or injuries resulting from the accident.

Pennsylvania also has a “negligent entrustment” law which may apply in this situation. Under this law, an employer may be held liable if they knew or should have known that an employee was incompetent or unfit to operate the company vehicle, but allowed them to do so anyway. This may apply if, for example, the employee had a poor driving record or had been involved in previous accidents while driving a company vehicle.

Additionally, the employer may also be liable if they failed to properly maintain the vehicle or if there was a defect in the vehicle that contributed to the accident.

It is important to note that there may be some limitations or exceptions to the employer’s liability in this situation. For example, if the employee was not acting within the scope of their employment at the time of the accident, the employer may not be liable. Similarly, if the employee was engaged in intentional misconduct or criminal behavior at the time of the accident, the employer may not be held liable.

If an employer is faced with a situation where an employee caused an accident while driving a company vehicle, it is recommended that they consult with a qualified attorney who can provide specific advice based on the facts of the case. It may also be advisable to review and update company policies and procedures regarding the use of company vehicles to minimize the risk of liability in the future.

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