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Booze Blues

Employee DUIs could become your problem.

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This story appears in the November 2002 issue of Entrepreneur. Subscribe »

One of your employees has a few drinks at a company dinner, runs a red light on the drive home, and hits and seriously injures the occupants of another car. Is your company responsible? Though the laws vary by state, the simple answer is yes. And you need to be sure your insurance will cover it.

"When the employee is acting in the course and scope of his or her duties, then the employer is vicariously liable if that employee injures someone," says attorney Jon Miller, a partner with Berger, Kahn, Shafton, Moss, Figler, Simon & Gladstone in Irvine, California.

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