Rideshare drivers face various hurdles when it comes to their jobs. From rowdy passengers and daily traffic to reckless driving and road rage from others sharing the road. So, what happens when the unfortunate takes place and an accident occurs? When rideshare drivers are injured on the job, do they have coverage? Let’s take a look below.
So, you’re a rideshare driver and an accident or incident occurs while on the road. Your delivery app, such as Uber, is switched on and working properly. So, it is safe to say you are covered by that company’s fleet policy, correct? Though typically correct, Matthew Owen, a lawyer at Zarek Taylor Grossman LLP, tells Canadian Underwriter that there may be gaps in coverage if you’re a rideshare driver who is injured on the job.
An example given by Owen involves an Uber Eats driver who parks and exits a car, then slips and falls while walking to a restaurant to pick up an order. “Whether or not those sorts of circumstances will constitute an accident, and whether a motor vehicle liability policy will have to respond is unclear,” he tells Canadian Underwriter. “It is unlikely that the automobile policy would cover that scenario.”
Rideshare companies, like Uber, have made past attempts to fill this gap. Ontario’s Workplace Safety and Injury Board (WSIB) has registered Uber Eats for accident and sickness coverage for bike couriers. Whether or not this extends to cars is unclear.
“There’s going to be some of those circumstances where, at least from an accident benefits perspective, the question is going to be whether they were in an accident at all,” Owen states. “If they’re not in an accident, they’re not entitled to benefits.” If rideshare drivers are injured in a car accident while the app is on, they can continue to claim under the fleet policy. With this in mind, that same coverage will not apply if they slip and fall or suffer a back injury while carrying a passenger’s luggage.
With this said, there are still circumstances in which drivers or delivery people can end up claiming benefits. It does, however, depend on whether or not the injury is due to the use or operation of an automobile.
“There’s a whole body of case law involving legal tests about whether or not the use or operation of a motor vehicle is what caused the injury,” Owen says. “And part of that is whether or not the incident can fairly be considered a normal incident of the risk created by the use and operation of the automobile.”
What hurdles do these types of drivers face?
There are still hurdles that rideshare drivers who are injured must face if they require coverage from an incident. The first is declaring whether an injury arose from ordinary, average activities in which automobiles are used. The next hurdle is where tests known as “multi-factorial causation tests” come into play. These tests determine whether operating the automobile was the direct cause of an impairment. Alternatively, the acts leading to said injury can be part of an ordinary risk associated with using an automobile.
“The first question, about whether the incident arose out of the ordinary and well-known activities to which automobiles are put, is often an easy test to meet,” Owen states. “Then there’s the second part. Would the injuries have occurred but for the use and operation of that vehicle? And was there any sort of intervening event?”
In 2016, the Ontario insurance regulator announced it had approved policies regarding ride-sharing for all Uber Drivers. Since then, the insurance industry in Ontario has developed multiple solutions when it comes to meeting the growing demand for ride-sharing services. It is important to take note of which insurers work with which rideshare companies. However, you do have a lot of options to choose from. Aviva Insurance and Economical Insurance are to major insurers in the industry that provide insurance for rideshare drivers with insurance. Economical Insurance, in particular, entered a partnership with Uber Canada to offer insurance to their drivers in Ontario.
Whether you recently began as a rideshare driver, are looking into it, or are experienced, there is much to consider in the realm of insurance. At the end of the day, speaking to your insurance provider about your options as a rideshare driver is crucial. If you are in the market for new insurance, remember to contact isure or request a quote today!
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