Auto Insurance Claims: Possible law suit?, vespa scooter, general liability insurance

Question
QUESTION: Hi, our LLC company is currently producing a feature film and one of our rented trucks was involved in an accident, where the other party was driving a Vespa scooter with a passenger. Vespa scooter got damaged and the riders got injured (not sure how seriously, but nothing life threatening). Police report states following: Truck (our) driver stated that he is not sure whether it was green or red light when he drove through the intersection heading West bound.  Vespa driver states that he was passing through green light and the truck didn't yield the right of way.  Vespa scooter rammed into the side of the truck.  Vespa driver failed to produce driver's license.  From what I know from our truck driver, Vespa diver was taken to hospital.

We are a very small production but have general liability insurance which came with non owned/hired vehicle liability insurance.  I want to know if we are protected against law suits or claims, if Vespa driver decides to sue.  Truck rental agency told us that it might get very ugly, since the Vespa driver might sue the production company, truck rental place and the truck driver for several million dollars.  How feasible is this?  Or what would happen in this case and what can we do to protect ourselves.  We basically have no money to hire a lawyer and handle extended court cases, etc.  In our case, would the LLC company be sued or we as owners of the company will be sued?  Neither the company or us have enough money to satisfy any law suits.

Thank you so much in advance.  Really appreciate your opinion.


ANSWER: Hi Raymond,

Since you have non-owned/hired automobile liability coverage, you should let the insurance company handle everything. The first step is to report the incident with your insurance company. They will then take a statement from the drivers of both vehicles and make a liability decision (who ws at fault). If your driver was at fault the insurance company will attempt to negotiate a settlement with the injured people but not until all of their treatment is complete. The amount of any settlement will be based on the type and extent of the injuries sustained and the length and type of treatment.  If they are not able to reach a settlement and a lawsuit is filed your insurance company will provide you with a defence attorney as part of your policy. Since you are an LLC which means Limited Liability Company, you should not be able to be held personally liable for the actions of your employee (driver). Depending on the extent of the injuries and subsequent treatment, this process could take several months. So just report this to your insurance company and let them handle it. Thats why you have insurance.

Now go finish that movie and make some money.

I hope this helps
Richard Hixenbaugh

---------- FOLLOW-UP ----------

QUESTION: Hi, sorry to bug you again with the question, but we just found out that we are not covered with non owned/hired vehicle liability insurance.  Also, we only had collision insurance with truck rental, so I guess they won't cover anything as well.  What might happen?  What's going to happen personally to the people in charge of LLC?  Would at least LLC status protect us personally?  What's the worst can happen?



Thank you,  RJ

Answer
Hi Ray,

This is not good news. The LLC protect the members of the LLC but only if the truck was rented in the name of the LLC. If someone rented the truck in their own name, that person as well as the driver of the truck at the time of the accident will likely be held personally liable for any property damage as well as any injuries.

I'm not sure what else I can tell you other than to start shopping for an attorney.

I hope this helps
Richard Hixenbaugh