Motor carriers, particularly those that engage independent contractors, should keep in mind that the issue of worker classification, and how those contractors are treated by the motor carrier, could have a profound impact on whether claims are covered under their automobile liability insurance programs.
A recent federal court decision, Spirit Commercial Auto Risk Retention Grp., Inc. v. Kailey, both highlights the importance of worker classification in the transportation industry (and the potential insurance implications), and serves as a welcome reminder that it is important for a motor carrier to understand whether the risks associated with its routine business operations are covered within the boundaries of its insurance coverage.
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Aug 24, 2017
H. Scott Williams