Momentum - Business to Business Online Magazine MOMENTUM January 2019 | Page 23

Business Law Do You Know Who Is Driving For Your Company? By: Trisha A. Barita Barita & Keough Law Firm, PLLC [email protected] Trisha A. Barita is a 14-year Licensed Texas Attorney practicing in Business & Employment Law & Owner of Barita & Keough Law Firm As we start a new year in 2019, it can be a good time for business owners to reevaluate what risks they are taking in their business and how they could possibly limit those risks or best protect against them. One of those risks is people driving on behalf of the company. Most business owners may feel they have a good understanding of the risks and liabilities that they face in running the operation of their business and especially on who is driving on behalf of the company. But consider this scenario, Company A has a company owned vehicle allowing only designated delivery driver employees use those vehicles to drive and deliver Company A products. Company A feels protected because they made a copy of each of the delivery drivers’ licenses upon hire, ran a standard DPS background check, and has them insured under Company A’s insurance. Yet, one day Company A sends the file clerk out in his own car to pick up a lunch order for some visiting customers in the office and he gets in a car accident. Company A could be liable and get sued for the personal injury and physical damages under various causes of action under Texas law including respondent superior, negligent hiring, supervision, and training. Company A has no knowledge of whether file clerk is a great driver or has a suspended license from two DWI’s. Further, suppose Company A is working on a project with Company B, Company A could find themselves liable for Company B’s employees under a borrowed employee doctrine if Company A has a right to control the employees. As an additional concern for companies or non-profits that use volunteers, under certain facts, a 22 MOMENTUM / January 2019 company may be liable for the acts of a volunteer when the company is exercising control over the volunteer and this includes driving on behalf of the company. So moving into 2019, companies should consider whether company driving policies need to be updated, revisit insurance coverage issues as it relates to driving, run necessary background checks with proper authorizations, revise Independent Contractor Agreements, and consider the risks as a company when you conduct your work throughout the year so that you can make adjustments to limit exposure and above all else at least know who is driving on behalf of the company. This information is not legal advice and due to the rapidly changing nature of the law and any reliance on information provided by outside sources, this article and its writer and publisher do not make any warranty or guarantee concerning the accuracy or reliability of the content in this article. The attorney and publication present the information in this article for informational purposes only and not to be a substitute for legal advice of a licensed attorney.