What Happens When a Personal Vehicle Is Used Commercially in a Georgia Accident?
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Two separate questions open up. First, whether the driver’s personal auto policy covers the crash at all, which depends on that policy’s own business-use terms. Second, whether someone the driver was working for can be held responsible, which under Georgia law turns on whether the driver was a servant acting within the scope of that business (O.C.G.A. § 51-2-2) or an independent contractor (§ 51-2-4). If neither answer produces enough insurance, the injured person’s own uninsured/underinsured motorist coverage can fill the gap.
Three possible sources of payment
| Source | What decides it | Where the rule comes from |
|---|---|---|
| The driver's personal auto policy | The policy's exclusions for business or commercial use, read as written | The insurance contract |
| The business the driver was working for | Whether the driver was its servant acting "in the prosecution and within the scope of his business", or an independent contractor not "subject to the immediate direction and control" of the business | §§ 51-2-2, 51-2-4 |
| The injured person's own UM coverage | Whether the at-fault vehicle is uninsured or underinsured under the statute's definitions | § 33-7-11 |
The driver’s personal policy
Whether a personal policy covers deliveries, sales calls, or other paid driving is a question about that policy’s wording. For one kind of commercial driving the General Assembly addressed the question directly: insurers writing motor vehicle policies in Georgia “may exclude any and all coverage” under the owner’s policy for any loss while a driver is logged on to a transportation network company’s network or providing its services (§ 33-1-24(g)(2)). Rideshare driving has its own required coverage, explained in how insurance works after an Uber or Lyft accident. For other business use, the injured person needs the driver’s actual policy, including the declarations page and exclusions, to know whether it responds.
The business the driver was working for
Section 51-2-2 makes a person liable for torts committed by a servant “in the prosecution and within the scope of his business, whether the same are committed by negligence or voluntarily”. Section 51-2-4 sets the opposite default for independent contractors: an employer “generally is not responsible for torts committed by his employee when the employee exercises an independent business and in it is not subject to the immediate direction and control of the employer”. Section 51-2-5 then lists exceptions, including where the business “retains the right to direct or control the time and manner of executing the work”. So the facts that matter are:
- Whether the driver was an employee or an independent contractor, judged by who controlled the time and manner of the work.
- Whether the trip was part of the work, or a personal errand during or after it.
- Who owned the vehicle and whether the business had its own auto coverage that includes non-owned vehicles.
When the at-fault driver’s coverage falls short
If the personal insurer denies coverage and no business is responsible, the at-fault vehicle may be uninsured as to the injured person; if some coverage exists but is too low, it may be underinsured. The injured person’s UM coverage then applies on the terms explained in how UM coverage and stacking work in Georgia. A liability insurer’s legal denial of coverage is one of the statutory definitions of an uninsured vehicle (§ 33-7-11(b)(1)(D)(iii)).
What to ask after the crash
- Was the driver working at the time, and for whom?
- Which insurer issued the driver’s personal policy, and has it accepted or denied the claim in writing?
- Does the business carry commercial auto or non-owned auto coverage?
- What are your own UM limits?
Sources
- O.C.G.A. §§ 33-1-24, 33-7-11 (text as published March 2024); §§ 51-2-2, 51-2-4, 51-2-5 (text as published in October 2016 on a mirror site; no amendment recorded in the 2022 to 2026 legislative summaries).
- House Bill 529 (2023), as passed House and Senate, amending § 33-1-24.
General information about Georgia law as of October 2026. It is not legal advice, and reading it does not create an attorney-client relationship.