Key Points: 

• Like any other vehicle, a van may be considered “commercial” when it is titled or registered to a company and/or used for business purposes. 
• While some passenger vans or heavy-duty cargo vans meet the definition of “commercial vehicles” under federal or state law, many commercial vans used by businesses do not and thus are not subject to special regulation. 
• Georgia law requires that all vehicles have insurance coverage, but if you operate a van that is legally classified as a commercial vehicle, you will need to have a far greater amount of coverage than is required under a regular auto insurance policy. 
• If a business doesn’t have a commercial vehicle insurance policy, or the policy doesn’t fully cover accident costs, the injured victim can sue the business to recover the remaining amount. 

With the surge in online shopping and disruptions to supply chains, you may have noticed a sharp increase in the number of delivery and cargo vans on Atlanta’s roads. Whether it’s a small business or a large company, these commercial vans are everywhere, from plumbers carrying tools to job sites to high-volume delivery companies transporting packages throughout the city.

If you’ve been injured in an accident caused by a commercial van, seeking compensation can feel overwhelming. Your situation might be more complex than a typical car accident. Depending on the details of your case, you may have a claim not only against the at-fault driver but also the business that owns the van. If the business doesn’t have proper commercial vehicle insurance coverage, you may even need to file a lawsuit to protect your rights.

What is a Commercial Van? 

You might be wondering what makes a van “commercial.” Like any vehicle, a van is considered commercial when it’s titled or registered to a company or used for business purposes. Often, a commercial van is used to transport goods or paying passengers, which could directly impact your case if you’re involved in an accident.

Cargo vans, for example, are similar to passenger vans, with the cab and cargo area connected. However, cargo vans usually have large rear doors, making it easier to load and unload heavy materials or multiple packages. Businesses like plumbers, movers, florists, electricians, landscapers, and package delivery companies (think Amazon or FedEx) commonly use these vans to keep up with high demand. If you’ve been injured by one of these vehicles, it’s important to know what regulations apply to your situation.

According to the Federal Motor Carrier Safety Administration (FMCSA), a commercial vehicle is one that operates on a highway in interstate commerce, transports goods or provides services, and meets specific criteria. For example, the vehicle might weigh over 10,001 lbs., be designed to transport nine or more people, or carry hazardous materials. If the van involved in your accident fits this definition, it’s subject to federal regulations, which could influence your legal options.

However, if the van is only used within Georgia (intrastate commerce) and doesn’t transport hazardous materials, federal regulations might not apply to your case. Still, Georgia law requires commercial vehicle registration and licensing for any vehicle over 10,001 lbs., designed to transport 16 or more passengers, or used to transport hazardous materials.

Even if the van that caused your injuries doesn’t meet federal or state commercial vehicle criteria, it doesn’t mean the business or driver isn’t responsible. Your case may still involve complex legal issues, but understanding these regulations can help you navigate your claim and seek the compensation you deserve.

Driver’s License Requirements for Commercial Vans in Georgia 

In Georgia, the type of driver’s license you need to operate a commercial van depends on the vehicle itself. If your van meets the federal or state definition of a commercial vehicle, you’re required to have a commercial driver’s license (CDL).

To obtain a CDL, you must pass a skills and knowledge test, have a driving history that meets safety standards, and undergo a medical screening. As a CDL holder, you’re held to a higher standard when driving on public roads. Serious traffic violations or negligence can jeopardize your CDL certification. If you or someone else operates a commercial vehicle without the necessary CDL and causes an accident, the company could be held liable and face penalties under federal or state law.

However, if your van doesn’t meet the federal or state criteria for a commercial vehicle, you can legally drive it with a regular Georgia driver’s license, even if you’re using it for business purposes. Despite this, some businesses require drivers to have CDL certification as a company policy, even if it’s not legally necessary. This provides added protection against liability if you cause an accident, and many insurance carriers prefer or require CDL-certified drivers for coverage under commercial vehicle insurance policies.

Are Businesses Liable for Accidents Caused by Employees? 

In some businesses, the owner is the only one who drives the van. But in other businesses, the company owns one or more vans, and its employees operate them on the roads. Under the legal theory of “vicarious liability,” the employer can be held liable when an employee’s negligence causes another person to be injured. This rule applies whether the injured party is another driver, a pedestrian, or a passenger in the van being operated by the employee. In certain situations, the employee may also be liable. 

Whether the business can be held liable for the actions of its employee while driving is not always straightforward. Generally, any time someone is performing any duties related to work, the person is considered “on the job”—even if they are also doing personal business or driving a personal car. 

If the driver who caused the accident was working as an independent contractor at the time, the company that hired them may not be legally responsible (as an employer would be). To determine whether the company can be held responsible, the court would consider factors such as whether the vehicle was registered and licensed in the company’s name, whether the contractor had their own insurance coverage, and what type of control the company had over the contractor’s work and schedule. 

Ways a Business Can Be Directly Responsible for a Van Accident 

Employee negligence is not the only way a business can be held liable for a commercial van accident. The company may be directly responsible for causing the accident because of improper maintenance of the van (e.g., faulty brakes or worn-out tires), insecure cargo, or the hiring and retention of unqualified/unsafe drivers. 

If the van fits the FMCSA definition of a commercial vehicle, regulations require that drivers follow mandatory rest periods and companies keep logs documenting drivers’ hours. Drivers must also pass medical screenings and have CDL certification. Violations of federal or state laws governing commercial vehicles can help prove that a company acted negligently in a civil case. 

In many Georgia commercial van accident cases, the victim may be able to sue the company directly. If the company itself was negligent—not just vicariously liable—it is responsible for the damages it caused even if the costs are beyond the scope of its vehicle insurance policy. 

How Auto Insurance Coverage Works in Commercial Van Accidents 

Georgia requires that all vehicles have a certain amount of liability insurance coverage to operate on public roads. But if you operate a van that is legally classified as a commercial vehicle, you will need to have a far greater amount of coverage than is required under a regular auto insurance policy. 

Under FMCSA regulations, a liability insurance policy covering a commercial vehicle carrying freight must provide $750,000 to $5,000,000 in coverage depending on the type of commodities transported. Commercial vehicles designed to transport 16 or more passengers must carry $5,000,000 in coverage; those transporting 15 or fewer passengers must carry $1,500,000. The FMCSA also requires $5,000 per vehicle and $10,000 per occurrence in cargo insurance. 

If your van is considered a commercial vehicle under Georgia law, you are required to carry liability insurance with at least $100,000 per person and $300,000 per accident. If your vehicle carries more than 12 passengers, the minimum requirements are $100,000 per person and $500,000 per accident. Georgia law also requires $25,000 per vehicle and $50,000 per accident in cargo insurance coverage. 

If your van doesn’t meet either the federal or state criteria for a commercial vehicle, you’re not legally required to have more than the minimum amount of auto insurance coverage, which is $25,000 per person and $50,000 per accident in bodily injury liability and $25,000 per accident in property damage liability. 

To save money on premiums, some small businesses choose to forego commercial vehicle insurance and only insure their cargo vans with personal auto insurance. However, insurance companies consider any van a commercial vehicle if it’s used for business purposes, and a personal auto policy wouldn’t fully cover the costs of an accident in most situations. 

The reason is simple: accidents involving commercial vehicles are more complex and can be much more expensive than a typical car accident. In a car accident case, the at-fault driver’s policy must cover bodily injury and property damage liability, but in a collision involving a larger vehicle carrying cargo, those costs are often much higher. 

In addition, a business owner must have coverage for medical expenses for the driver and passengers (regardless of who is at fault), worker’s compensation, employer’s liability, employment practices liability, business interruption, and commercial property damage to be fully protected. A business should also be covered for things that can happen outside of vehicle collisions, such as lost or damaged cargo, loading accidents, or damages from vandalism, theft, or fire. 

When Commercial Van Accident Costs Are Above Policy Limits 

In a costly commercial van accident with severe injuries or multiple victims, the damages may exceed the coverage limit on the company’s insurance policy. If the insurance policy doesn’t fully cover your losses, you or your attorney can file a lawsuit against the business to recover the remaining costs, and the business would have to use revenue or assets to pay the judgment. 

When the company is a sole proprietorship, as many small businesses are, that means you can go after the business and personal assets of the owner to satisfy a legal judgment. Not having enough insurance coverage or having the wrong type of coverage (i.e., personal auto coverage versus commercial vehicle coverage) for your commercial van can be financially devastating for an owner who is sued for an accident.