What are the liability issues with insurrance?

Question

I am a case worker for a mental health facility and my boss wants me to use my personal car to pick up clients. The clients are kids and I was wondering what kind of liability issue I would be putting myself in?

Answer 1

If you're regularly driving for work, you're going to need your insurance company to know that, and you'll probably pay more, or else they might deny coverage if you get in an accident.  

They should be paying you mileage for using your personal vehicle.  It should be more than just the cost of gas and the wear and tear on your car, it should cover your increased insurance cost, too.  If they aren't, they're s******g you.

Answer 2

You need to call your company BEFORE you agree to this.  Some companies will have you change your useage to business use (at a higher rate then drive to work), some will make you get a commercial auto policy.  Some will just cancel you (if they don't offer a commercial auto policy - some companies don't write commercial insurance).

You are opening yourself up for huge lawsuits, especially if these client are children.  Remember, the parents have put their trust in you to take care of their kids & if you have an accident, oh boy, watch out.  You have a much higher duty of care than say a mom who is taking her kid & his friend to soccer practice.

Most insurance companies in my area are very wary of this situation.

Answer 3

What the guy above said.  Just to add, the standard mileage from IRS is about 50 cents per miles driven.

http://www.irs.gov/newsroom/article/0,,i...

That accounts for your cost of oil, repair, insurance, etc.

Good luck...

Answer 4

It depends whether they are considering you a "contractor" or an employee.  I would be very careful with this.  Best to speak to your insurance company because there could be very serious liability issues in the event of an accident