Mileage allowance covers damage to employee's car

March 10, 2012

Your employee went on an office errand and crashed into a lamppost. Now she wants you to pay for it. Find out if this fender bender is on you.

Q: I recently asked an employee to run an errand for the practice in her personal automobile. While on the errand she hit a lamppost and wants the practice to pay for the damage to her vehicle. What is required and/or appropriate in such a case?

It is important for employees to understand, either through a short written agreement or your practice's employee manual, that the mileage allowance covers their exposures to loss associated with driving on behalf of the practice.

Answers to our readers' questions were provided by John W. Miller II, principal of Sterling Risk Advisors in Marietta, Georgia. Send your money management questions to medec@advanstar.com Also engage at http://www.twitter.com/MedEconomics and http://www.facebook.com/MedicalEconomics.