What Happens if the Trucker Who Hit You is an Independent Contractor?

The trucking industry continues to undergo upheavals and changes. Over the past 15 years, the number of independent contractors has increased by almost 40%, to reach 1,000,000 workers. These independent contractors are not employed by a transportation company. Instead, they are “owner operators” who own their own truck and work freelance.

Traditionally, anyone hurt by an employee could sue their employer as well under a “vicarious liability” theory. That made it easier to reach an employer who had deeper pockets to pay a settlement. When a person injures a victim while working, the victim could add the employer as a defendant.

What happens if you are struck by a true independent contractor? Can you still obtain compensation?

Truckers Should Have Insurance

The good news is that all truckers should carry liability insurance to comply with federal law. If you are injured in a crash, you can submit a claim on the trucker’s insurance if they are responsible for the accident. You (or your attorney) can then negotiate a settlement for damages caused, like medical care and pain and suffering.

The minimum policy limit is $250,000 currently, which should cover significant injuries and property damage. That is more than the minimum insurance motorists must carry in South Dakota.

Is the Trucker Really an Independent Contractor?

In certain situations, you might still be able to sue a trucking company for the accident, even where the trucker is an owner-operator. Some companies like to regularly use the same independent contractors. Employers prefer contractors for various reasons, including reduced liability and exemption from paying unemployment insurance. However, some independent contractors are not really “independent.” After a while, they begin to look like employees.

For example, suppose a transportation company hires an independent contractor for a haul. They are impressed with his efficiency, so they come back to him and start giving him regular work. If the owner-operator works solely for this one company, he is probably an employee, regardless of the label both sides use to describe the relationship.

If the independent trucker is really an “employee,” you can sue the transportation company as the employer. Your lawyer should investigate to drill down and see if the trucker is independent or not. Suing an employer is beneficial after an accident, especially if you suffer more than $250,000 in damages in your accident.

Speak with Hoy Law Today

One of the most important tasks a lawyer has is identifying all defendants to a claim. The person driving a vehicle who hit you is the primary target. But sometimes other defendants can be added. Suing a trucking company is standard when their employee ends up causing an accident.

At Hoy Law, our Sioux Falls truck accident lawyers know that these collisions cause significant damage. We believe in holding all defendants accountable and will examine whether to add more defendants. Reach out to schedule a free consultation. We can meet at a convenient time and place to go over your accident and options.

Sources:

truckinginfo.com/news/new-rules-on-independent-contractors-could-affect-truckings-owner-operator-model

bts.gov/data-spotlight/counting-transportation-workforce-nearly-1-million-self-employed