Hi there. It is not clear whether the accident occurred in your workplace (i.e. the machine was on your business’ premises) and/or whether the driver the car was an employee, customer or member of the public. It is also not clear whether the legal costs are now being claimed against you by the injured party or your insurer. For these reasons, the information below is of a general nature only and should not be considered specific advice.

If an accident occurred on the premises of your business and another person suffered property damage, that person may be entitled to claim compensation for the damage against your business. If your business is properly insured, this type of claim would usually be covered by public liability insurance. If the injured person was partly or wholly at fault, then you may have a legal basis for not paying the person compensation. A lawyer can advise you on whether you are required to pay the injured party the full amount of compensation they are demanding.

Different processes should be followed if the person injured or the person whose property was damaged was an employee. In this situation, the employee may be entitled to workers’ compensation. More information is available from WorkSafe Victoria (www.worksafe.vic.gov.au).

Legal costs can be incurred if one party consults a lawyer for legal advice or representation in a legal matter. If the person who suffered property damage has incurred legal costs and is demanding that you pay these costs, you may not be required to pay this money unless a court has determined that you were at fault for the original property damage. Depending on the terms of your insurance policy, you may also find that any legal costs claimed against your business are covered by the policy, meaning that your insurer is responsible for paying this money, not you.