The way in which work is performed has changed. The U.S. economy has changed to a “gig economy,” where private individuals work as contractors on behalf of large corporations, often using their own equipment. In the past, individuals providing services were usually working as agents or employees of corporations, using the employers’ equipment. For a consumer, it is now unclear whose liability insurance covers you if are injured while receiving services from an independent contractor.

The prime example of the new gig economy is Uber, the ride-sharing company that allows private citizens to use their own vehicles to provide other individuals rides. The rider finds the independent Uber driver using Uber’s phone app and pays the driver through the app at the ride’s completion.

Uber provides their contractors with liability insurance, it also requires the drivers to carry their own insurance, and it is difficult to determine which policy will control when an accident occurs. If you are in an automobile accident with an Uber driver or while you are riding as a passenger with Uber driver, understanding which policy applies is an important first step.

In understanding which insurance policy applies, you must know whether the accident occurred within the scope of an accepted Uber ride or not. The question is when is an Uber driver “on the clock” or working for Uber, as opposed to just driving their private vehicle around town?

Uber’s Commercial Policy

If you formally accept a ride from an Uber driver through Uber’s app and a subsequent accident occurs during that ride, the incident is covered by Uber’s commercial insurance policy. Similarly, if a driver gets into an accident on his or her way to picking up a ride formally requested through the Uber app, Uber’s commercial policy applies.  This commercial policy covers Uber for damages or injury of up to one million dollars per incident.

In terms of insurance coverage, what happens when an Uber driver drops off his or her customer, completes that transaction, and is waiting for another ride request? What if you get into an accident with an Uber driver while he or she is not actively responding to an Uber request or transporting a passenger?

The Uber Driver’s Personal Insurance Policy

If you are in an accident with Uber driver while you are not an Uber passenger and the driver is not on his or her way to pick up an Uber passenger, his or her personal liability insurance covers the accident. Assuming that the policy is in effect, there is no way of knowing what its limits are or how extensive is the coverage it offers.

Uber’s Contingent Coverage Policy

As was stated above, normally, an Uber driver’s personal insurance policy applies in between rides. However, if a situation arises where the driver’s personal insurance policy either does cover or does not sufficiently cover harm caused by an accident, Uber has a contingency policy.  It is important to note that the contingency policy is not nearly as robust as Uber’s commercial policy. Instead, it has very low limits of $50,000 per person/$100,000 per accident with an additional up to $25,000 for property damage.

What Should You Do if You are in an Uber Accident?

If you or a loved one has been injured in a collision with an Uber driver or while a passenger with an Uber driver, receiving the compensation you are due will require consultation with an experienced personal injury attorney.

Call Barrett Law now, an experienced Mississippi personal injury law firm, to represent you if a loved one has been injured or killed as a result of an Uber accident

The seasoned Mississippi Personal Injury Attorney at Barrett Law has the experience to take on defense counsel for either the Uber driver’s insurance company or for Uber’s insurance; either will be focused on minimizing or denying you compensation for the harm you or a loved one experienced.  Contact us now at (601) 790-1505 to get experienced counsel on your side.