It is not usual for a company car to be used for purposes that go beyond official work for the employer’s business. But what if the employee doesn’t work for the company any longer, but still has the vehicle? Who is responsible if the former employee gets into an accident in that vehicle? Is the business obligated to provide liability insurance coverage?
In a recent case, a dispute arose as to whether the vehicle owner’s insurance company owed liability coverage for an accident that occurred when the automobile was being used by a former employee for non-business purposes.