Sued for a Work-Related Car Accident in Florida? What to Do if Your Employer Is Out of Business
If you’ve been sued for a car accident that happened while you were working, but your former employer is no longer in business, you may feel overwhelmed and uncertain about your legal options. In Florida, employers are typically responsible for accidents caused by employees while performing job-related duties. However, if your employer has shut down, you may still face personal liability. Understanding your legal defenses and the best steps to take can help protect your rights.
Are You Personally Liable for a Work-Related Car Accident?
In Florida, employers are generally responsible for their employees’ actions while they are performing job duties under a legal principle called vicarious liability (also known as respondeat superior). This means that if you were driving a company vehicle or performing work-related tasks when the accident occurred, your employer’s insurance should have covered the claim.
However, if your employer is no longer in business, the situation becomes more complicated. The key questions in your case include:
- Was the accident truly work-related? If you were performing job duties, your employer (or their insurer) would typically be responsible.
- Did your employer have commercial insurance at the time of the accident? If so, the insurance company may still cover the claim, even if the business is now closed.
- Were you an employee or an independent contractor? Employees are usually covered by their employer’s insurance, while independent contractors may be personally liable.
- Did the employer have a legal entity, like an LLC or corporation? If so, the business entity may still be responsible rather than you personally.
Learn more about Florida car accident defense strategies and how liability is determined in these cases.
What If Your Employer’s Insurance No Longer Exists?
Even if your employer has shut down, their commercial auto insurance policy might still apply. Florida law requires businesses to carry insurance for company vehicles, and many policies remain valid for accidents that happened while the business was operational. However, if the policy has expired or was canceled, you may be left defending the lawsuit on your own.
If your employer was a corporation or LLC, you might still be able to shift liability to the now-defunct business. Florida law allows lawsuits against dissolved businesses under certain conditions, meaning there may be assets or insurance funds that can cover the claim. If you’re unsure, consult with a Florida car accident defense attorney to explore your options.
Defenses If You Are Being Sued Personally
If you are being sued personally for a work-related accident, you may have several legal defenses, including:
1. You Were Acting Within the Scope of Employment
If you were working when the accident happened, your employer—not you—should be liable. Your attorney may argue that the lawsuit should be directed at the business, even if it has closed.
2. The Employer’s Insurance Should Cover the Claim
Even if the business no longer exists, their insurance policy may still be responsible. Your lawyer can investigate whether the policy was active at the time of the accident and if coverage still applies.
3. The Plaintiff Has Other Avenues for Recovery
If the injured party has uninsured motorist coverage or other insurance options, they may be able to recover compensation without suing you personally. Learn more about understanding Florida car insurance coverage and how it affects liability.
4. The Lawsuit Is Filed Too Late
Florida has a two-year statute of limitations for personal injury claims after a car accident (Florida Statutes § 95.11). If the plaintiff filed the lawsuit after this deadline, it may be dismissed.
What Should You Do If You’re Sued?
If you have received a lawsuit for a work-related car accident and your former employer is out of business, here are some key steps to take:
- Do not ignore the lawsuit. Failing to respond can result in a default judgment against you. Learn more about what to do when sued for a car crash in Florida.
- Find out if your employer had insurance. If they had coverage at the time of the accident, their insurer may still be responsible for defending the claim.
- Gather all employment records. Any documentation showing you were working at the time of the accident will be helpful in your defense.
- Understand your legal options. If you were at fault in the accident, you may still have defenses that can help minimize your liability. Learn more about what to do if you caused a car accident in Florida.
- Consult a Florida car accident defense attorney. An attorney can help determine whether you should be held personally liable or if the lawsuit should be directed elsewhere.
How a Florida Personal Injury Defense Lawyer Can Help
A lawsuit for a work-related car accident can be stressful, especially if your former employer is no longer around to defend you. A Florida car accident defense attorney can help by:
- Investigating whether the employer’s insurance is still in effect
- Determining if the lawsuit is improperly targeting you
- Identifying legal defenses that may reduce or eliminate your liability
- Negotiating with the plaintiff’s attorneys to resolve the claim efficiently
At Florida Civil Counsel, we help individuals across Miami, Orlando, Tampa, Jacksonville, Pensacola, and all of Florida defend against car accident lawsuits. If you are being sued for a work-related accident, we are ready to review your case and protect your rights.
Contact Us for a Consultation
If you’re being sued for a car accident that happened while you were working, but your employer is now out of business, you don’t have to navigate the legal process alone. Contact our Florida car accident defense attorneys today to discuss your options. We serve clients statewide, including Orlando, Miami, Tampa, Jacksonville, and beyond.
