|Is a corporation protected from liability when someone attempts to hold it liable for damages resulting from a vehicle accident caused by a corporate employee? Can a corporation be held liable?

Circumstances Vary
A corporation may be liable for the negligent acts of its employees under certain circumstances. For example, the employee must be acting within the scope of employment, such as delivering goods on behalf of the corporation.

However, if the employee was driving the company vehicle home from a bar after work and was involved in a collision, the corporation may not be liable (especially if the employee was not permitted to drive the company vehicle after work hours).

Insolvent Corporations
Let’s say you are injured in an employee-caused accident and the corporation is insolvent with no assets or insurance. Can you seek compensation from the corporation’s shareholders? Usually not.

However, liability may be imposed upon the shareholders if you can prove that the corporation is merely a shell. In this instance, shareholders usually use the corporation’s assets for personal reasons, or the corporation has inadequate capital.

Get the Facts
When you are involved in a traffic collision, it is important to find out if the other driver is working at the time of the accident, and whether the vehicle is employer-owned.

If the employer is a corporation, the corporation may be liable for your injuries if the employee was acting within the scope of employment when the accident occurred.