Accident & Liability Framework

Document ID: PLCY-LIA-001
Effective Date: December 22, 2025
Last Review: December 22, 2025
Owner: Hop And Haul Team

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CONFIDENTIAL

This document is CONFIDENTIAL and for internal use only. Do not distribute outside the organization.

SaaS Definition

Note on Terminology: In this document, "Company" refers to the Customer (the Fleet Operator/Motor Carrier employing the drivers). Hop And Haul is a SaaS platform provider and does not employ drivers or own vehicles. See Governance & Assumptions for liability boundaries.

1. Purpose

This document defines the liability framework for accidents occurring during Hop And Haul transport, establishing that the company bears responsibility for incidents involving internal drivers, and outlining the procedures for incident handling, claims, and documentation.

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2. Liability Principle

2.1 Core Position

Company bears liability for all Hop And Haul transport incidents.

Basis	Rationale
Employment relationship	Both drivers are W-2 employees or authorized contractors
Course of employment	Transport is company-authorized business activity
Respondeat superior	Employer liable for employee acts within scope of employment
Company vehicle	Vehicle is company-owned or company-authorized
Company insurance	Commercial policy with rider endorsement covers transport

2.2 What This Means

Party	Liability Exposure
Company	Primary liability for all transport-related incidents
Pickup Driver	Protected under employment + commercial insurance
Passenger Driver	Protected under employment + commercial insurance
Third Parties	Claims against company, not individual drivers

2.3 Legal Basis

┌─────────────────────────────────────────────────────────────┐
│                    RESPONDEAT SUPERIOR                      │
│  ─────────────────────────────────────────────────────────  │
│  "Let the master answer"                                    │
│                                                             │
│  Employer is vicariously liable for torts committed by     │
│  employees acting within the scope of their employment.    │
│                                                             │
│  Hop And Haul Transport = Within scope because:               │
│  • Company-authorized activity                             │
│  • Operationally necessary (breakdown, reposition, etc.)   │
│  • During work hours                                       │
│  • Using company vehicle                                   │
│  • Documented company process                              │
└─────────────────────────────────────────────────────────────┘

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3. Insurance Coverage Requirements

3.1 Required Coverage

Coverage Type	Requirement	Minimum Limits
Commercial auto liability	Required	$1M per occurrence
Intra-company rider endorsement	Required	Explicit passenger coverage
Workers' compensation	Required	State minimums
Umbrella/excess	Recommended	$5M+

3.2 Intra-Company Rider Endorsement

Critical Requirement: Standard commercial auto policies may exclude passengers who are also employees. The intra-company rider endorsement explicitly covers:

Coverage Element	Included
Bodily injury to employee-passengers	✓
Medical expenses for employee-passengers	✓
Lost wages for employee-passengers	✓
Third-party claims arising from transport	✓

3.3 Pre-Trip Verification

Before any match is finalized:

[ ] Vehicle has active commercial auto coverage
[ ] Intra-company rider endorsement is attached
[ ] Policy is within effective dates
[ ] No coverage exclusions apply to this transport

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4. Accident Scenarios & Responsibility

4.1 Scenario Matrix

Scenario	At Fault	Primary Responsibility	Secondary Responsibility
Pickup driver causes accident	Pickup driver	Company	Commercial auto insurer
Third party causes accident	Third party	Third party's insurer	Company (uninsured motorist if needed)
Road hazard / weather	N/A	Company	Commercial auto insurer
Vehicle malfunction	N/A	Company	Manufacturer (if defect)
Passenger injured (no collision)	Varies	Company	Workers' comp

4.2 Detailed Scenario Handling

Scenario A: Pickup Driver At Fault

Incident: Pickup driver rear-ends another vehicle while passenger aboard

Responsibility Chain:
1. Company is primary responsible party
2. Commercial auto policy responds to third-party claims
3. Workers' comp covers passenger driver injuries
4. Pickup driver NOT personally liable (within employment scope)
5. Company handles all claims administration

Scenario B: Third Party At Fault

Incident: Another vehicle strikes Hop And Haul transport

Responsibility Chain:
1. Third party's liability insurance is primary
2. If third party uninsured → Company's uninsured motorist coverage
3. Workers' comp covers both drivers' injuries
4. Company pursues subrogation against third party

Scenario C: Single Vehicle Accident

Incident: Transport vehicle rolls over due to driver error or road conditions

Responsibility Chain:
1. Company is primary responsible party
2. No third-party claim (single vehicle)
3. Workers' comp covers both drivers
4. Commercial collision coverage for vehicle damage

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5. Claims Process

5.1 Immediate Response (0-24 Hours)

Step	Action	Owner	Timeline
1	Ensure safety of all parties	Pickup driver	Immediate
2	Call 911 if injuries or significant damage	Pickup driver	Immediate
3	Report incident via voice agent or call center	Either driver	Within 1 hour
4	Incident escalated to Tier 3	Call center	Immediate
5	Safety team notified	System	Immediate
6	Claims intake initiated	Safety/Claims	Within 4 hours
7	Insurance carrier notified	Claims	Within 24 hours

5.2 Documentation Requirements (At Scene)

Document	Who Collects	How
Police report number	Pickup driver	From responding officer
Other driver info	Pickup driver	Exchange per standard procedure
Photos of damage	Pickup driver	Company camera app
Witness information	Pickup driver	If available
GPS snapshot	System	Automatic
ELD data	System	Automatic export

5.3 Claims Administration (Post-Incident)

Phase	Timeline	Actions
Intake	Day 1	Collect all documentation, open claim file
Investigation	Days 1-7	Review GPS, ELD, recordings, statements
Determination	Days 7-14	Establish fault, coverage applicability
Resolution	Days 14-60	Negotiate settlement, close claim
Review	Day 60+	Post-incident analysis, prevention measures

5.4 Accident Response RACI Matrix

Consolidated responsibility assignment for accident handling:

Activity	Safety	Claims	Operations	Legal	HR
Scene safety direction	R	-	I	-	-
Evidence capture coordination	A	R	C	I	-
Insurer notification	I	R/A	I	C	-
DOT reportability determination	A	C	I	R	-
Driver communication	C	I	R	I	A
Legal hold trigger	I	C	I	R/A	-
Workers' comp filing	I	C	-	I	R/A
Post-incident review	A	C	R	C	C

Legend: R=Responsible, A=Accountable, C=Consulted, I=Informed

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6. Workers' Compensation Integration

6.1 When Workers' Comp Applies

Injury Type	Workers' Comp	Commercial Auto
Driver injured in accident	✓ Primary	✓ Secondary (excess)
Passenger injured in accident	✓ Primary	✓ Secondary (excess)
Driver injured by third party	✓ + Subrogation	Third party's insurer
Pre-existing condition aggravated	✓ (if work-related)	Case-by-case

6.2 Dual Coverage Coordination

┌─────────────────────────────────────────────────────────────┐
│                    INJURY TO DRIVER/PASSENGER               │
└─────────────────────────────┬───────────────────────────────┘
                              ↓
┌─────────────────────────────────────────────────────────────┐
│  WORKERS' COMPENSATION (PRIMARY)                            │
│  • Medical expenses                                         │
│  • Lost wages (partial)                                     │
│  • Disability benefits                                      │
│  • Rehabilitation                                           │
└─────────────────────────────┬───────────────────────────────┘
                              ↓
┌─────────────────────────────────────────────────────────────┐
│  COMMERCIAL AUTO (SECONDARY/EXCESS)                         │
│  • Medical expenses beyond WC limits                        │
│  • Pain and suffering (if third-party claim)               │
│  • Property damage                                          │
└─────────────────────────────────────────────────────────────┘

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7. Driver Protections

7.1 Non-Retaliation Policy

Protection	Description
No termination for accidents	Within scope, not gross negligence
No personal liability	Company assumes all liability
No premium pass-through	Driver doesn't pay increased premiums
Legal representation	Company provides if needed

7.2 When Protections May Not Apply

Circumstance	Company Protection
Gross negligence	May not apply
Intentional misconduct	Does not apply
Impairment (drugs/alcohol)	Does not apply
Unauthorized deviation	May not apply
Criminal activity	Does not apply

7.3 Definition of Gross Negligence

Gross Negligence	NOT Gross Negligence
Extreme speeding (30+ over limit)	Minor speeding
Texting while driving	Brief distraction
Running red lights intentionally	Misjudging yellow light
Driving while impaired	Driving while fatigued (without HOS violation)

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8. Third-Party Claims Against Company

8.1 Claim Handling

Step	Action	Owner
1	Claim received	Claims department
2	Acknowledge receipt	Claims (within 24 hours)
3	Assign claims adjuster	Claims
4	Investigation	Claims + Legal
5	Liability determination	Legal
6	Settlement negotiation	Claims + Legal
7	Payment or litigation	Finance + Legal

8.2 Legal Representation

Party	Representation
Company	Corporate counsel + insurance defense
Pickup driver (if named)	Company provides defense counsel
Passenger driver (if named)	Company provides defense counsel

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9. Subrogation Rights

9.1 When Subrogation Applies

If third party is at fault:

• Company/insurer pays initial claims
• Company/insurer pursues recovery from third party
• Drivers cooperate with subrogation process

9.2 Driver Obligations

Obligation	Requirement
Preserve evidence	Do not discard, delete, or destroy
Provide statements	Cooperate with investigation
Court appearance	If required for recovery
Do not settle independently	Company handles all settlements

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10. Reporting & Documentation

10.1 Required Records

See PLCY-RET-001 Records Retention Policy for authoritative retention schedule.

Summary of applicable retention periods:

Record	Retention	Purpose
Accident report	7 years	Claims, litigation
Police report	7 years	Evidence
Photos/video	7 years	Evidence
GPS/ELD data	7 years	Reconstruction
Medical records	10 years	Workers' comp
Claim file	10 years	Audit, litigation
Settlement documents	Permanent	Legal

Refer to PLCY-RET-001 for legal hold procedures and destruction requirements.

10.2 DOT Recordkeeping

Requirement	Threshold	Action
Recordable accident	Fatality, injury requiring transport, or towaway	Report per FMCSR
Non-recordable	Minor damage, no injuries	Internal record only

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11. Prevention & Continuous Improvement

11.1 Post-Accident Review

Element	Review Question
Pre-trip validation	Did all checks pass? Were they accurate?
Route/timing	Was route appropriate? Time pressure factors?
Driver fitness	HOS status? Fatigue indicators?
Vehicle condition	Any pre-existing issues?
System factors	Did Hop And Haul contribute to conditions?

11.2 Corrective Actions

Finding	Potential Action
Validation gap	Enhance pre-trip checks
Training need	Targeted driver coaching
System flaw	Process/technology fix
Policy gap	Policy update

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12. Document Control

Version	Date	Author	Changes
1.0	[DATE]	[NAME]	Initial release