Is Your Business Liable for Car Accidents Due to Mechanical Failure?


Car accidents occur due to a variety of reasons and the driver’s negligence is not always the cause. Mechanical failure is also one of the more common reasons which lead to a large number of mishaps every year. These mechanical problems could range from simple issues like flat tires or non-functional headlights to dangerous ones such as brake failure. Whatever the issue may be, the implications can be serious for the drivers and victims injured in the accident.

Such mishaps also come under the coverage of personal injury law, with businesses responsible for mechanical failure being liable to compensate the victims. These could be automobile manufacturers, mechanic services or businesses that operate these vehicles. For a business, it is worth knowing how you can be held responsible because you will probably have to pay massive compensation to the victims. Let us explain how and when the liability for such mishaps falls on businesses.

Liability of automobile manufacturer

Typically, automobile manufacturers put every single vehicle through stringent safety testing because passenger safety is their responsibility. There may still be unfortunate occasions where mishaps happen due to vehicle failure or malfunction. If this happens due to a manufacturing error, the maker can be sued under a product liability claim. When a person suffers injury, pain or suffering due to a mishap induced by such an error, they can rightfully claim compensation from the car manufacturer. Legally, the victim can hold manufacturers responsible in the following situations:

  • Design flaws: If the victim can prove that the faulty vehicle with a defective design was made by the manufacturer, the financial responsibility falls on the latter. This can happen when there are flaws in the vehicle’s design or the parts are not tested properly.
  • Production errors: Problems can still happen even if a vehicle has a flawless design. There could be negligence in the production process that could result in a malfunction. Once again, the manufacturing company becomes liable for the injuries of the victim.

Liability of a mechanic service agency

In another instance, the mechanic service agency can be held liable for a mishap caused by a mechanical failure in the vehicle. The relationship between a car owner and a mechanic is based on trust. Owners rely on the experience and training of mechanics to keep their vehicles operating safely. If a mechanic goes slack with services, major mishaps can happen due to the failure of parts such as brakes, tires, and steering. In such circumstances, the victim can sue the agency for the damages and injuries. Experts providing strategic legal representation for car accident victims can prove that the mechanic has not adhered to the quality control standards they need to. However, they also suggest that car owners should choose only reputable agencies that excel in service quality and have proper insurance cover to pay compensation if something unfortunate happens.

Liability of a business that owns the vehicle

Yet another scenario of business liability for mishaps caused by mechanical failure relates to the vehicles used for business purposes. Essentially, if you use a car for business errands (taxi service or general errands), you are responsible for its regular maintenance and upkeep. If the accident occurs while an employee is driving on duty, the business has to pay compensation to the driver or anyone injured in the mishap. Not investing in the timely maintenance of company vehicles is regarded as gross negligence and can land the business in major trouble. So, it makes sense to follow a regular maintenance schedule for all the vehicles that you own. At the same time, there is a need for staying ahead of emergency repairs as and when they are to be done.

Liability of the driver of the malfunctioning vehicle

When a car malfunction leads to an accident, there will be a question of whether the driver can be liable for damages. The answer varies from case to case. In most cases, the driver is not liable for accidents caused by a mechanical failure of their vehicle. However, they may have to bear the liability if it is proved that they suspected a problem or even knew that there was a future potential for a mechanical failure. This translates into negligence, which would have resulted in the mishap. Obviously, you will have to compensate the accident victim if you are responsible for the accident.

Vehicle malfunctions are rare but their implications can be fatal for the drivers and others on the road. Thankfully, victims can sue the responsible businesses and claim the compensation they deserve. It is the responsibility of businesses to prevent such mishaps in the first place so that neither they nor the victims have to suffer.