Company credit card and rental car damage question?

Question

A fellow employee of mine was in NYC and was in an accident with a rental car. He was doing work for the company and used the company credit card but the rental was in his name so he was liable. Our employer gets pissed if we choose to add the LDW coverage because of the cost but does not have any kind of insurance that covers us other than what the credit card covers. The total bill from the rental car company for damages was around $1,200. Our employer waited until the rental car company threatened to send it to collections before he paid $400 off the total and set up payments on the rest. This was around the first of the yr and the boss has not made a payment since. The rental car company can not reach our boss and said if the rest is not paid by the end of the week it will go to collections against my co-worker. What would happen if my co-worker used his company card which he used for the rental to pay off the bill. He knows he is quitting anyways.

Answer 1

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Answer 2

He will go to jail for unauthorized use if he charges something on the company credit card that wasn't authorized by the company.  Was he on company business when the accident took place AND ACTING IN A MANER CONSISTENT WITH THE TERMS OF HIS EMPLOYMENT?  If he was, the employer can be held responsible for the damages just as the employee.  If he wasn't on company business, he could get in trouble for using the company credit card to obtain the rental in the first place.  The coworker needs to speak to the legal department or insurance company representative handling the claim on behalf of the rental company and tell them that the rental was for company business and the rental was authorized by the company.  They will then go after the employer (which they would prefer to do anyway since in almost all cases the employer has insurance to cover these types of losses and more money to pay the claim than does the employee who was driving the car.

Read this:

http://en.wikipedia.org/wiki/Respondeat_...