# Independent contractor

> An independent contractor runs their own business and controls how the work is done. See why that label can decide who pays after a work-related crash.

Canonical page: https://accidentclaimfacts.com/glossary/independent-contractor/  
Last reviewed: October 29, 2026 by the Accident Claim Facts editorial team  
General information, not legal advice. Talk to a licensed attorney in your state.

## Quick answer

An independent contractor is a worker who runs their own business and controls how the work is done. Unlike an employee, a contractor's careless acts usually are not the hiring company's legal responsibility, because the respondeat superior rule applies only to employees.

## In a car accident claim

The label matters when the driver who caused the crash was working: a courier, a delivery driver, a tow truck operator or a trucker. If the driver was an employee doing their job, the employer and its insurance may answer for the crash. If the driver was a true independent contractor, the hiring company usually is not liable for the driver's carelessness, and the claim may be limited to the driver's own insurance.

The contract's label is not the end of it. If the sides disagree, courts weigh how the work really ran: who controlled the details, who set the routes and hours, who supplied the vehicle, and whether the driver was paid by the job or by the hour. There are also exceptions for certain duties a company cannot hand off. For rideshare crashes, state laws require insurance while the driver is working; in Texas, for example, coverage of $1,000,000 must be in place during a prearranged ride. Our guides to [company vehicle accidents](https://accidentclaimfacts.com/accidents/company-vehicle-accidents/) and [rideshare accidents](https://accidentclaimfacts.com/accidents/rideshare-accidents/) explain more.

## Example

> **Example:** A courier hits a cyclist while delivering packages. The delivery company says the courier is an independent contractor. The cyclist's claim then looks at who set the courier's routes and schedule, who owned the van and which insurance policies were in force.

## Related terms

- [Respondeat superior](https://accidentclaimfacts.com/glossary/respondeat-superior/)
- [Transportation network company](https://accidentclaimfacts.com/glossary/transportation-network-company/)
- [Liability](https://accidentclaimfacts.com/glossary/liability/)

## FAQ

### Can I sue a company if its independent contractor caused the crash?

Usually not for the contractor's own carelessness, though there are exceptions, and a company can still be responsible for its own mistakes. Whether a driver really was a contractor is often disputed.

### Who decides whether a driver is an employee or a contractor?

If the sides cannot agree, a court decides based on the facts of the working relationship. A contract calling someone a contractor is evidence, but it does not settle the question on its own.

## Sources

- [Cornell LII Wex, Independent contractor](https://www.law.cornell.edu/wex/independent_contractor) — definition, control and the usual absence of vicarious liability
- [Cornell LII Wex, Respondeat superior](https://www.law.cornell.edu/wex/respondeat_superior) — employer liability and the factors that separate employees from contractors
- [Texas Legislature, Insurance Code § 1954.053](https://statutes.capitol.texas.gov/Docs/IN/htm/IN.1954.htm#1954.053), checked October 29, 2026