February 26, 2025
By Kris Bonn
Work-related motor vehicle accidents are a significant occupational hazard for employees across various industries in Canada. Whether it’s a delivery driver navigating city streets, a construction crew travelling between job sites, or an office worker driving to a meeting, the risks are real and often underestimated. These incidents can lead to serious injuries, costly legal battles, and financial strain on both employers and employees.
Employers face exceptionally high stakes. Liability in work-related motor vehicle accidents is not always straightforward, and many businesses may not realize the extent of their responsibility when employees are involved in accidents. It’s equally important for employees to understand their rights when using a vehicle for work.
In Canada, employer liability is governed by provincial workplace safety laws, workers’ compensation regulations, and common law principles. Employers who fail to take appropriate safety measures may face lawsuits, increased insurance premiums, and penalties under occupational health and safety legislation.
Employer liability in Canada
Under Canadian law, employers can be held vicariously liable for the actions of their employees if an accident occurs within the scope of their employment. If an employee drives for work-related reasons – making deliveries, attending meetings, or transporting equipment, for example – the employer may be responsible for any resulting damages. Vicarious liability is based on the principle that employers benefit from their employees’ work and must bear some responsibility for the associated risks, even if they were not directly negligent.
Beyond vicarious liability, employers can be held independently liable for negligence in supervising employees, mechanical malfunctions or failing to implement appropriate safety measures. If an employer does not provide sufficient driver training, enforce safe driving policies, or maintain vehicles properly, they may be found negligent in the event of an accident. For example, allowing an employee with a poor driving record to operate a company vehicle without proper training can expose the employer to liability. Similarly, failing to enforce rest breaks for long-haul drivers or permitting employees to use personal vehicles without adequate insurance coverage creates significant risks.
Liability also varies depending on the type of vehicle used for work. If an employee is driving a company-owned vehicle, the employer is generally responsible for ensuring it is maintained, insured, and safe to operate. Accidents caused by mechanical failure or inadequate maintenance can result in legal and financial repercussions. When employees use their personal vehicles for work, liability becomes more complex. Employers must confirm that these vehicles are insured for work-related use and that employees understand their responsibilities. Sometimes, personal auto insurance policies may not cover work-related accidents, potentially exposing the employee and employer to liability.
Legal and financial consequences for Canadian employers
Work-related motor vehicle accidents can have significant legal and financial repercussions. Employers liable under Canadian tort law may face lawsuits, leading to expensive settlements or court-ordered compensation. Workers’ compensation claims can also drive up employer premiums, adding financial pressure on businesses. Non-compliance with provincial OHS regulations can result in fines and enforcement actions. In Ontario, the Occupational Health and Safety Act requires employers to take all reasonable precautions to ensure worker safety, including proper vehicle operation and training. Alberta’s OHS Code outlines specific regulations regarding fatigue management for commercial drivers.
These incidents also pose reputational and operational risks. A workplace motor vehicle accident can harm a company’s public image, potentially leading to lost business opportunities and challenges in attracting skilled workers. Legal disputes and rising insurance premiums can further disrupt operations and reduce profitability, highlighting the importance of proactive risk management.
Reducing employer liability: Best practices for Canadian workplaces
Employers need to take a hands-on approach to workplace driving safety to keep employees safe and reduce liability. Setting clear driving policies is essential. These should cover expectations for vehicle use, ban distracted or impaired driving, and outline how to report accidents or violations. Regular driver safety training is just as necessary, ensuring employees understand defensive driving techniques, local traffic laws, and the dangers of fatigue or impairment.
Keeping vehicles in top shape and adequately insured is another key step. Employers should routinely inspect and maintain company vehicles while confirming that any employee-owned vehicles used for work have adequate insurance. Running background checks on employees’ driving records can also help spot potential risks before they become serious problems.
Technology can take safety a step further. GPS tracking, telematics, and onboard monitoring systems help identify risky driving behaviours and assist with accident investigations. These tools promote accountability and encourage safer driving habits, ultimately protecting both employees and the business.
Work-related motor vehicle accidents present serious risks for employers and employees, with potential legal, financial, and reputational consequences. Employers must recognize their responsibilities under Canadian law and take proactive measures to reduce liability and ensure workplace safety. By implementing clear driving policies, providing regular training, maintaining vehicles, and utilizing safety technology, businesses can protect their employees while minimizing risks. A strong commitment to road safety reduces accidents and safeguards a company’s reputation, financial stability, and operational success in the long run.
Kris Bonn, partner at Bonn Law, fights for those who have suffered injuries and loss through the wrongdoing of others, including victims of medical malpractice or medical negligence, automobile collisions and long-term disability denials. Kris is the current president of the Brain Injury Association Quinte District and the past president of the Ontario Trial Lawyers Association.