Anybody can sue anybody, so that's not news. Most GL insurance policies specifically exclude automobile accidents. The auto insurance company would be sued, but that's what auto insurance id for. By the way, an actual law suit rarely happens, things are negotiated in a settlement agreement.
While we're on the subject, if you're in an accident, *you* can sue his insurance company. But that doesn't stop him from letting *you* drive the vehicle.
Typical scary story told by the boss in order to (and righly so) disuade his employees from using the vehicles in a fashion that they're not intended for.
