Black Car Fund vs Workers Compensation—discover the key benefits, coverage, and how NYC rideshare drivers can protect their income after an injury.
Working as a rideshare driver grants you the freedom to set your own schedule and make money on your own time. In most places, though, it comes with a big drawback: the lack of access to workers’ compensation benefits if you get hurt on the job.
However, if you’re a rideshare driver in New York, you have a safety net. The Black Car Fund was originally established to provide workers’ compensation insurance to “black car” drivers (usually chauffeurs and drivers of luxury limousines), but it has since expanded to cover drivers for Uber, Lyft, and other rideshare services.
While the Black Car Fund is similar to workers’ compensation insurance, the claim process and the benefits it offers are a little different. Here’s a closer look at what New York rideshare drivers should know.
What Is the Black Car Fund?
The Black Car Fund was established in 1999 by New York state law. Because most drivers of for-hire vehicles were independent contractors, an on-the-job injury could leave them unable to earn income or pay their medical bills. The fund created a workers’ compensation system to support these drivers.
As the transportation landscape in New York began to involve more rideshare vehicles, the benefits of the Black Car Fund were extended to drivers for Uber and Lyft. Notably, rideshare drivers don’t have to pay a premium to access benefits. Instead, rideshare passengers pay a small fee for each trip, and that fee goes toward the fund.
Who Qualifies for Coverage from the Black Car Fund?
Your eligibility for the Black Car Fund depends on whether you’re driving for a black car service or a rideshare company. If you drive for an established black car service, you must meet the following criteria:
- Be registered with the New York City Taxi and Limousine Commission
- Have averaged at least 10 hours of work per week over the last quarter
If you drive for a rideshare company, you must have made at least $4,000 in gross income over the past quarter. Only the income you earn by driving passengers in New York will count toward this $4,000 minimum.
What Types of Benefits Does the Black Car Fund Offer?
The Black Car Fund provides medical care and lost income replacement to drivers who are injured on the job. It also offers a range of other benefits:
- Accident disability insurance for injuries outside of work
- Critical illness insurance for non-work-related illnesses
- Defensive driving courses
- Vision insurance
- Dental insurance
- A hearing care program
- Virtual primary care medical visits
- Discounts on prescriptions, urgent care, and medical imaging
- Access to the Independent Drivers Guild (IDG) Mental Health and Wellness Program
- A death benefit for drivers killed on the job
To qualify for critical illness insurance or accident disability insurance, you must be registered with the Black Car Fund before you suffer an illness or accident. You won’t be eligible for benefits if you enroll afterwards.
What Is the Difference Between the Black Car Fund and Workers’ Compensation?
If you were employed by a taxi company, your employer would carry workers’ compensation insurance. The Black Car Fund allows independent contractors to qualify for the same coverage.
Employers must pay insurance premiums to maintain workers’ compensation coverage, but workers’ compensation insurance through the Black Car Fund works differently. The fund does not directly pay an insurance company, and neither do drivers. Instead, all benefits are funded by a 2.5% fare surcharge.
Which Offers Better Protection for Injured Drivers?
Because the Black Car Fund is tailored to the needs of rideshare and black car drivers, it generally offers better protection for these workers. These are some of its specific advantages for rideshare drivers:
- It applies to all eligible drivers in the state, so you still qualify if you move to another city.
- Filing a claim is generally more efficient than it is with traditional workers’ compensation.
- Coverage is portable, so it stays with you if you switch rideshare platforms.
The Black Car Fund is truly one of a kind. In most industries, the only way to access workers’ compensation coverage is to work for a traditional employer. This means that injured independent contractors are left to handle medical bills on their own.
Can You Claim Black Car Funds and Workers’ Compensation at the Same Time?
Yes, if you work for a company that is a member of the Black Car Fund and also carries its own workers’ compensation insurance. A business is legally required to join the Black Car Fund if it meets the following criteria:
- It is a certified NYS Central Dispatch Facility
- It provides car-for-hire services in New York
- More than 90% of business payments aren’t cash payments from passengers
- It doesn’t own more than 50% of dispatched vehicles
Businesses meeting these criteria must become members of the fund even if they have separate workers’ compensation coverage.
How Long Does It Take to Get Compensation from the Black Car Fund?
If you’ve just been injured while driving and are unable to work, you probably need compensation as soon as possible. However, coverage does not apply immediately after you submit your claim.
While it may not take that long, the Black Car Fund asks you to allow up to 45 days before you start receiving payment via either direct deposit or paper check.
What Should You Do if You Were Injured as a Rideshare Driver?
If you’re unfortunate enough to suffer an on-the-job injury, you will need to file a claim to receive benefits. This involves three steps.
1. Submit the Car Accidents and Black Car Fund Form
As soon as possible after your injury, fill out and submit this form to get started. The form itself is very brief — it asks for basic contact information and where the accident occurred.
2. Consult with a Representative
After you submit your form, an IDG representative will call you within 24 business hours. They will ask a few questions to determine whether you have a good case for workers’ compensation benefits.
If you do have a strong case, the representative will schedule an appointment with a qualified attorney. You’ll be matched only with lawyers who understand and have worked with the Black Car Fund.
3. Talk to a Lawyer to Discuss Next Steps
Your lawyer will call you within 24 hours. They will help you start the process of filing a workers’ compensation claim. This might involve visiting a medical provider and documenting your accident and injury.
If you’ve never had to file a workers’ compensation claim before, the claims process may be overwhelming at first. However, your lawyer will be there to guide you.
Let a Lawyer Help You File for Black Car Fund Benefits
Filing a claim for benefits through the Black Car Fund is a more streamlined experience than filing a claim with most workers’ compensation providers. However, that doesn’t mean it’s wise to take on the claims process yourself.
A lawyer will advise you at each step, reducing your risk of making time-consuming mistakes. They can prepare you for potential problems with your claim and connect you with medical care. With their help, you can recover the compensation you need to support yourself as you heal.
FAQS: Black Car Fund vs Workers Compensation
1. What is the Black Car Fund in New York?
The Black Car Fund helps NYC rideshare drivers with work injuries. It covers medical costs and lost wages. Drivers don’t pay for it. Instead, passengers help fund it through a surcharge.
2. Who qualifies for Black Car Fund benefits?
You need to drive for a NYC rideshare or black car service. Rideshare drivers must earn over $4,000 in a quarter. Black car drivers should work more than 10 hours a week.
3. Can I get workers’ comp and Black Car Fund?
Yes, if your company has its own workers’ comp insurance. You can get benefits from both if your employer is in the fund. If your employer is in the fund, you might get both benefits.
4. How do I file a Black Car Fund claim?
First, fill out a simple accident form. Then, talk to an IDG representative. They will connect you with a lawyer. The lawyer will help you with your claim.
5. How long does Black Car Fund payment take?
It can take up to 45 days to get paid after you file. You’ll get paid by direct deposit or check. How fast you get paid depends on your claim and how quickly it’s processed.
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