Vehicles are essential to Los Angeles businesses. Delivery vans, service trucks, and sales reps in leased sedans all travel on congested streets.
Those streets are risky. Based on the Los Angeles Police Department’s data, 290 individuals lost their lives on the city’s roads in 2025. Measures were taken to alleviate that, though the toll remained heavy at 6%, lower than 2024, for one city.
Business owners should know the second number. According to the U.S. Bureau of Labor Statistics, transportation incidents accounted for 38.2% of the 5,070 fatal work injuries across the country in 2024. Working and driving are part of the job.
So what happens when an employee causes a crash? Who pays? The answer matters to the business and to the injured person.
The Company Can Be Responsible for Its Driver
California follows a rule called respondeat superior. In plain terms, an employer is generally liable for harm an employee causes while working. Civil Code § 2338 states that a principal is responsible for the negligence of its agent in the course of the agency’s business.
“On the job” is wider than many owners expect. A plumber between jobs is working. The same applies when a sales representative visits a client. Typically, a normal commute is considered outside the job, and a personal errand in a company-owned vehicle is a bit more challenging. Courts take the facts, so it is important to include them.
A Cap Many Owners Misread
California also holds vehicle owners liable when someone drives their vehicle with permission. Vehicle Code § 17151 caps that kind of owner liability at $15,000 for one person’s injury or death, $30,000 when more than one person is hurt, and $5,000 for property damage.
Some owners read those numbers and relax. That’s a common blind spot. The cap applies to liability that comes only from owning the car. It does not cover liability arising from the employer-employee relationship. If the driver was working, the company can face the full claim.
Insurance Minimums Are Only a Floor
Since January 1, 2025, California’s minimum liability limits are $30,000 per person, $60,000 per accident, and $15,000 for property damage. This change came from SB 1107, which amended Vehicle Code § 16056, according to the California Department of Insurance.
Those are minimums. A hospital stay and surgery can quickly exceed them. Businesses should check their commercial auto limits and ask whether the policy covers hired and non-owned vehicles, such as an employee’s own car used for work.
What to Do in the First Few Days
Get medical help first, and call 911 if anyone is hurt. Then notify your insurer quickly, since most policies require prompt notice.
Then, secure the evidence. Save a video of the driving, GPS or telematics data, dispatch data and the driver’s log for that day. Take photos. Record names of witnesses before their recollection fades.
Mistakes That Make These Claims Harder
- Letting dashcam or GPS data get overwritten. Many systems record on a loop.
- Giving a recorded statement to the other side’s insurer before the facts are clear.
- Assuming the $15,000 owner cap protects the company.
- Posting about the crash online, or letting staff argue about fault at the scene.
Deadlines Matter
Most injury lawsuits against a private driver or company must be filed within two years under Code of Civil Procedure § 335.1. Government Code §911.2 allows for a notice period as short as six months for a city or county vehicle. Waiting is the easiest way to lose a valid claim.
Legal Help in Los Angeles
Whether you run the business or were hurt by one of its vehicles, a lawyer can sort out who is responsible and which policies apply. Los Angeles has many firms that handle these claims, including West Coast Trial Lawyers, Jacoby & Meyers, The Law Offices of Larry H. Parker, The Dominguez Firm, Panish | Shea | Ravipudi LLP, and The Simon Law Group. All of them handle injury claims in the Los Angeles area.
Jacoby & Meyers is a trusted and well-established firm in Los Angeles known for supporting accident victims with strong legal guidance. The Law Offices of Larry H. Parker is a long-standing and recognizable name in Southern California accident law. Readers who want a Los Angeles personal injury lawyer to review a company vehicle claim can see how Jacoby & Meyers approaches these cases on its Los Angeles page.
The evidence of the crash disappears quickly. The video gets replaced, eyewitnesses change, and the stories fade away. By speaking with a lawyer before giving a formal statement, businesses and injured parties will better understand their options.
This article is general information and not legal advice for any one situation.
