When an employee is injured in a car accident while performing work duties in Michigan, multiple types of insurance coverage can come into play. Knowing how these coverages work — and how they coordinate — can help business owners protect their employees, avoid costly coverage gaps, and stay compliant with Michigan law.
1. Workers Compensation Insurance – Your First Line of Protection
In most work-related injury cases,
Workers Compensation is the first coverage to respond. This policy covers:
- Medical expenses related to the injury
- A portion of lost wages while the employee recovers
- Benefits regardless of who was at fault in the accident
Michigan law requires most employers to carry Workers Compensation insurance. Failing to have it can lead to penalties, fines, or even personal liability for the business owner.
2. Commercial Auto Insurance – When the Accident Involves a Vehicle
If the accident occurs while an employee is driving a
company-owned vehicle, your
Commercial Auto Insurance typically covers:
- Property damage
- Liability for injuries to others
- In some cases, additional medical expenses if Workers’ Comp doesn’t apply
This coverage can also come into play if the employee is driving their
own vehicle for work purposes, depending on the circumstances and your policy terms.
3. Coordinating Workers Compensation and Personal Injury Protection (PIP)
In Michigan,
Personal Injury Protection (PIP) from an auto insurance policy can cover medical expenses after an accident. There may be situations where PIP and Workers’ Compensation coverage overlap, so it’s important to understand how your policies interact.
Proper coordination ensures your employee’s expenses are covered quickly and efficiently, without disputes between insurers.
4. Hired & Non-Owned Auto Coverage – Protecting Against Gaps
If employees use their
personal vehicles for business purposes, you should carry
Hired & Non-Owned Auto Coverage on your commercial auto policy. This endorsement helps protect your business if:
- The employee’s personal auto policy is insufficient
- You are held liable for damages resulting from the accident
Without this coverage, your business could be exposed to significant financial risk.
5. Documenting the Accident Properly
The claims process moves faster — and with fewer disputes — when you document the accident thoroughly. Be sure to gather:
- Accident and police reports
- Witness statements
- Medical records
- Photos or videos of the scene
This documentation helps insurers determine fault, coordinate benefits, and resolve claims more efficiently.
6. Act Quickly and Get Your Insurance Involved
Time is critical after an accident involving an employee. Report the incident to your Workers Compensation carrier, your commercial auto insurer, and any other relevant policies right away. Prompt reporting helps ensure claims are processed without unnecessary delays.
Final Takeaway:
When an employee is injured in an auto accident in Michigan, your Workers’ Compensation, Commercial Auto, and possibly Personal Injury Protection coverage may all come into play.
Understanding how these policies work together — and making sure you have the right endorsements like Hired & Non-Owned Auto — can protect both your employees and your business.
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Need help reviewing your Michigan commercial insurance coverage? Contact us today to make sure you’re protected from costly gaps.
