Insurance Coverage Denial: Working When the Accident Happened

If you were working and driving your personal vehicle when an accident occurred, your insurance company may refuse to provide coverage. Understanding why this can happen is essential, as it can leave you personally liable for injuries or damages caused in the crash.

An auto insurance policy is a contract between you and your insurer. In exchange for paying premiums, the insurer agrees to cover damages and defend you if you cause an accident. Like any contract, an insurance policy includes terms, conditions, and exclusions. One common exclusion is using your personal vehicle for commercial purposes. This can include activities such as delivering goods or food, providing ride-sharing services, selling products from your car, or performing any work-related duties while driving.

If you cause an accident during work and your employer does not provide commercial auto insurance, your personal policy may not cover the damages. This means you could be personally responsible for paying medical bills, property damage, or other costs resulting from the accident. Even if you were unaware of this exclusion, insurance companies can deny your claim if the policy terms specifically prohibit coverage while using the car for work.

On the flip side, if you are injured by someone who was working at the time of the accident in their personal vehicle, their insurance may also try to deny coverage based on the same commercial-use exclusions. In these situations, you may not only have to navigate complex insurance issues, but you could also have the option to pursue the company that employed the driver. For instance, if the driver was performing work duties at the time of the crash, their employer may be vicariously liable for the driver’s actions under the legal doctrine of respondeat superior. This could open an additional avenue to recover compensation for your injuries and damages.

Because these cases are legally complex, it is critical to consult a personal injury attorney. An attorney can review the insurance contracts, investigate the accident circumstances, and determine whether coverage exists. They can also evaluate potential claims against the employer, pursue all available avenues for recovery, and ensure you are fully compensated for medical expenses, lost wages, and other damages.