Labor Code 2802(a) provides, "An employer shall indemnify his or her employee for all necessary expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties, or of his or her obedience to the directions of the employer, even though unlawful, unless the employee, at the time of obeying the directions, believed them to be unlawful."
So, if your employee injures a third party's person or property while acting within the scope of employment, then you, as employer are liable for the damage.
And, that means, not just the damage above the employee's insurance deductable. It means all
of the damages, because the employee's insurance is intended to cover the employee -- not the employer. The employee is entitled to a full recovery (and, the employee's insurer probably is entitled to subrogation/reimbursement, if it pays the third party's claim before the employer does.
Hope this helps.
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