Whether a delivery driver is classified as an employee or independent contractor significantly affects liability when accidents occur. This classification determines whether the delivery company bears automatic vicarious liability and what insurance coverage applies—making it a crucial issue in delivery accident claims.
Why Classification Matters
Employees create vicarious liability for their employers. When employee drivers cause accidents, the company is automatically liable under respondeat superior. Companies must provide workers' compensation coverage and typically carry commercial auto insurance covering employee driving.
Independent contractors traditionally don't create vicarious liability. Companies argue they merely contracted for services and bear no responsibility for how contractors perform. Contractors typically must provide their own insurance.
This difference can mean the difference between recovering from a well-insured company versus an individual with minimal coverage.
The Classification Test
Courts look beyond labels to the actual working relationship. Key factors include:
Control over work: Does the company control how work is performed, or only the end result? Controlling methods, routes, schedules, and procedures suggests employment.
Economic dependence: Does the worker depend on this company for income, or operate an independent business serving multiple clients?
Integration into business: Is the work integral to the company's regular business operations?
Equipment and expenses: Does the company provide vehicles, uniforms, and materials, or does the worker use their own?
Gig Economy Classification Disputes
App-based delivery services (DoorDash, Instacart, Uber Eats) classify drivers as independent contractors, but this classification faces ongoing legal challenges. Courts and regulators in multiple states have found gig workers are actually employees based on the control companies exercise.
California's AB5 law presumes workers are employees unless specific conditions are met. Other states have similar measures or are considering them.
Liability Despite Contractor Status
Even when contractor classification is valid, delivery companies may still be liable through:
Direct negligence theories: Negligent hiring, training, or supervision of contractors creates direct liability regardless of employment status.
Agency relationships: If drivers appear to be company representatives and customers reasonably rely on that appearance, agency liability may apply.
Joint venture: When company and contractor share control and profits from delivery operations, both may be liable.
Statutory provisions: Some states impose liability on companies using contractors for certain activities regardless of classification.
Insurance Coverage Gaps
Contractor classification creates potential insurance gaps. Contractors' personal auto policies typically exclude commercial delivery. Company commercial policies may not cover contractor vehicles. Contractors may carry inadequate or no coverage.
Gig platforms provide some contingent coverage, but it may be secondary to (unavailable) personal coverage, creating coverage disputes.
Challenging Classification
If the delivery company argues contractor status to avoid liability, you can challenge the classification. Evidence supporting employee status includes company-controlled scheduling and routes, required uniforms or branding, company-provided equipment or materials, integration into regular business operations, and economic dependence on the company.
Misclassification arguments can defeat the contractor defense and establish company vicarious liability.
Practical Implications
From an accident victim's perspective, classification affects who you can sue and what insurance pays. Thorough investigation of the working relationship is essential to identify all liable parties and insurance sources.
Even when companies successfully defend contractor status, alternative theories may still support recovery from the company.
Getting Legal Help
Classification issues require careful legal analysis. An experienced attorney can evaluate the actual working relationship, identify all potentially liable parties, locate applicable insurance coverage, and pursue claims against appropriate defendants.
Don't accept at face value that the driver was "just a contractor." The legal reality may be more complex—and more favorable to your claim.