By Alex Stalvey
I’m seeing a troubling trend—more and more accident victims are discovering, only after the fact, that the driver responsible for their injuries was actually working on behalf of a small business at the time of the crash.
Many small business owners incorrectly assume their contractor’s personal auto policy will cover any incident. Still, liability often extends beyond just the driver if they cause an accident while on the job.
If you’ve been injured in an accident with a contractor, you have legal rights to seek full compensation, and it’s critical to understand who may be held accountable. However, I’m also seeing that at the moment, these victims overlook this critical step and assume the driver responsible for the accident wasn’t out on the road on behalf of their employer.
The Growing Issue of Business-Related Auto Accidents
It’s due to the “gig economy.”
Many small business owners rely on vehicles to operate—whether for deliveries, client visits, or transporting equipment—but they often fail to secure proper commercial auto insurance. As a result, when an accident happens, victims face unexpected legal battles over who is responsible for paying damages. If you find yourself in this situation, it’s essential to understand:
- The driver may not be the only liable party; their employer or contracting business could also bear responsibility.
- If the driver was using a personal vehicle for work, their personal insurance might deny coverage, leaving you to pursue claims against the business itself.
- An adequately insured business should have a commercial auto policy that covers work-related accidents—but many don’t.
Who is Liable? The Contractor, the Business, or Both?
When an accident occurs, the primary question is: who is financially responsible?
Liability often depends on the driver’s employment status and whether they were engaged in work-related duties at the time of the crash. Here’s how it breaks down:
- If the contractor was driving a company-owned vehicle. The business’s commercial auto insurance should cover damages. However, if the business lacks proper coverage, you may need to pursue a lawsuit against the company directly.
- If the contractor was driving their personal vehicle on behalf of their employer. Their personal auto policy may not cover a work-related accident. If they don’t have a business-use rider or commercial policy, their employer may still be liable for your damages under vicarious liability laws.
- If the contractor was an independent worker. Many independent contractors operate as their own businesses, meaning their personal or business liability insurance may be responsible for covering your claim. However, this depends on their policies—many are underinsured or completely uninsured for auto-related incidents. This is a situation where you need an experienced attorney by your side immediately! And sadly, this is the situation we are seeing more and more of locally.
Your Right to Seek Full Compensation
If you’ve been injured in an accident involving a contractor or employee driving for work, you have the legal right to seek compensation for:
- Medical expenses
- Lost wages
- Pain and suffering
- Property damage
The challenge is determining which insurance policy applies and ensuring responsible parties don’t try to evade liability. The line between work and personal use is getting grayer, and at-fault parties are not always forthcoming about the status of their situation.
Businesses that fail to insure their vehicles properly won’t be shifting the burden onto victims on our watch. My clients shouldn’t have to suffer financially because a business owner neglected to carry the proper coverage.
What You Should Do After an Accident
If you suspect the driver responsible for your accident was working for a business at the time, take the following steps immediately after an accident if you are able:
- Gather evidence. Take photos of the accident scene, vehicle damage, and any company branding on the vehicle.
- Ask the driver directly. Were they on the clock? Who do they work for? What was their task at the time of the accident?
- Request insurance information. Ask for the details of the driver’s personal policy and any business-related coverage.
- Contact us immediately. A personal injury lawyer can help investigate liability and ensure you pursue all possible sources of compensation.
We Hold Businesses Accountable
Small business owners who rely on contractors or employees to use their vehicles for work are responsible for carrying proper insurance. Unfortunately, many cut corners, intentionally or unintentionally, leaving victims struggling to secure compensation.
As an attorney, I’ve seen too many cases where victims were left footing the bill because a business owner failed to plan for the risks of operating a vehicle-based business.
If you’ve been injured in a work-related accident involving a contractor, don’t assume you’re limited to filing a claim against the driver alone. Businesses that fail to protect the public with proper insurance should be held accountable. You have the legal right to seek full compensation for your injuries—and I’m here to make sure you get it (click HERE to submit a Case Review request for a free consultation).
