The surge in on-demand delivery services has led to an unprecedented number of contract drivers on South Carolina roads. Major corporations like Amazon, Walmart, DoorDash, and Uber depend heavily on these independent contractors. However, it’s crucial to understand that labeling drivers as independent contractors doesn’t absolve these companies of responsibility when accidents occur.
South Carolina law stipulates that companies can be held liable if they exercise significant control over a driver’s work—such as setting schedules, monitoring performance, or enforcing strict policies—even if the driver is classified as an independent contractor.
Delivery Service Partners and Expanding Liability
Amazon’s use of Delivery Service Partners (“DSPs”)—small delivery businesses contracted to handle last-mile deliveries—complicates liability issues. These DSPs operate under Amazon’s stringent guidelines and some further subcontract tasks, creating a convoluted liability chain.
While contract drivers are mandated to carry specific insurance, these policies may not fully cover accident victims. Companies that fail to verify adequate coverage or permit unsafe drivers to operate can still be held accountable.
When Oversight Fails, Lives Are at Risk
Consider a tragic case from Texas, where an Amazon driver with multiple traffic violations, a suspended license, and outstanding felony warrants caused a fatal crash. This driver should never have been behind the wheel. The ensuing lawsuit alleges that Amazon’s inadequate vetting processes contributed to the tragedy.
The Growing Dependence on Contract Drivers
E-commerce giants like Amazon have increasingly turned to gig workers. Amazon Flex, introduced in 2015, allows contractors to use personal vehicles for deliveries, often without the insurance protections afforded to full-time employees.
Projections indicate that the gig economy will encompass 91 million workers by 2028, with delivery drivers constituting a significant segment. This expansion underscores the escalating risks associated with enforcing accident liability. Drivers who are “working” yet using a personal vehicle without enhanced insurance will be held accountable, as will their employers.
Insurance Gaps Leaving Victims Vulnerable
In South Carolina, contract drivers are required to carry:
- Commercial Auto Insurance: Covers liability, collision, and medical expenses when using a personal vehicle for business.
- Hired & Non-Owned Auto Insurance: Protects businesses but doesn’t cover a driver’s own damages.
- Occupational Accident Insurance: Provides medical and disability benefits for injured drivers.
- General Liability Insurance: Covers bodily injury, property damage, and legal expenses beyond auto-related incidents.
State minimum requirements for commercial auto insurance include:
- $25,000 per person for bodily injury
- $50,000 per accident for bodily injury
- $25,000 for property damage
Companies like Amazon, Uber Eats, and DoorDash may offer contingent liability coverage when a driver is actively making a delivery. However, it’s unknown how frequently drivers accept this offer.
The Hidden Risks of Rental Vehicles
If a contract driver operates a rental vehicle, liability may extend to:
- The Rental Company’s Insurance: Often minimal, with exclusions for commercial use.
- The Driver’s Personal or Commercial Insurance: Personal policies frequently deny claims for business use.
- The Hiring Company: Especially if they facilitated the rental, as seen with programs like Amazon’s.
- South Carolina’s Vicarious Liability Laws: Applicable if a company had substantial control over the driver.
Prompt Evidence Collection Is Crucial
If you or a loved one has been involved in an accident with a delivery driver, swiftly gathering evidence is essential:
- ECM (Black Box) Data: Records speed, braking, and crash-related details.
- Dashcam Footage: This can demonstrate driver negligence or mechanical failure.
- Driver Logs & Maintenance Records: May reveal regulatory violations.
- Eyewitness Statements & Police Reports: Strengthen claims.
- Accident Reconstruction Experts: Assist in determining fault.
It’s not uncommon for gig drivers to conceal their work status to avoid penalties, insurance denials, or legal repercussions.
Reasons Drivers Might Conceal Their Work Status
- Inadequate Insurance: Many personal auto policies exclude business use, and admitting to working could void coverage.
- Fear of Job Loss: Some drivers operate with suspended licenses or under unsafe conditions.
- Rental Agreements Prohibiting Commercial Use: Acknowledging business use could nullify rental company insurance.
The Escalating Risk of Delivery Driver Accidents
Accidents involving gig workers are on the rise. Many contract drivers endure long hours under pressure, often using personal vehicles without adequate insurance. Inconsistent vetting allows unsafe drivers to operate.
A CBS News analysis revealed that Amazon’s contract drivers have significantly higher safety violation rates than non-Amazon carriers. Over a six-year period, their unsafe driving rates were at least 89% higher each month.
Corporations Must Be Held Accountable
Companies often classify workers as independent contractors to sidestep liability, but courts are increasingly recognizing when businesses exert sufficient control over these drivers, holding them accountable for accidents.
If you or a loved one has been injured in a delivery driver accident, it’s imperative to seek legal guidance (click HERE to submit a Case Review request for a free consultation). Holding corporations responsible ensures justice for victims and promotes safer practices industry-wide.
