DC Judge Holds Empower in Contempt, Fines App $5,000/day for Operating Without Insurance
WASHINGTON, DC - A DC Judge has held Empower in Contempt of Court, for an earlier Order directing them to substantially comply with previous orders, and directives/requirements from the DC Department of For-Hire Vehicles. The Court has found that the company has not complied, and directed CEO Joshua Sear to pay $5,000 per day until the company is brought "into compliance."
This is the latest bombshell in a series of developments involving Empower. Tragically, Empower passengers, and even Empower drivers themselves, do not understand the gravity of what is going on, and what protections they don't have. Blaszkow Legal explains.
What is going on with Empower?
Empower (actual corporate name: Yazam, Inc., based in Mclean, Virginia) is a ridesharing app that is operating in Washington, DC, in competition with multi-national apps like Uber and Lyft. Empower is very unlike these larger ridesharing services, mostly because they claim to not be a ridesharing service at all, but just a technology platform that connects independent drivers to passengers. If this distinction is confusing to you, you are not alone. While the DC Government considers Empower to be a rideshare service, Empower does not. Unfortunately, passengers are caught in the middle, as they have been since the app opened up.
As of this writing, Empower still does not have any insurance, which leaves passengers, other drivers, and Empower drivers themselves with absolutely no protection for car accidents!
How long will this go on? And what does it mean for passengers, and for Empower drivers themselves?
The Empower Car Accident in DC
Let us look at a case study, of an unfortunate passenger who is hurt during a car accident while riding in an Empower vehicle. We will call this passenger Ms X.
Ms X signs onto the app, and needs to get to work. She hails a ride, gets in, and off
they go. On the way, the Empower driver goes through a redlight and is T-boned by
a car that had the right of way. Ms X is hurt, and the ambulance takes her to the
hospital. Ms X, being a smart woman, calls a lawyer, who oversees her case. After
a few months of physical therapy, she is recovered, and the case is ready to
move forward.
The question, however, is: how does the case proceed? And against whom???
The Injured Empower Passenger
Ms X's claim is against the driver of the Empower vehicle in our situation above, because the Empower driver ran the red light (that means the driver is negligent, and thus our tortfeasor, or defendant). At first glance, Ms X will be looking to recovery for her personal injury claim from the driver's car insurance. But who is that? This is where Empower is, sadly, letting people down. Empower has no insurance! Empower claims they are not a ridesharing service like Uber and Lyft, and do not have the mandatory minimum car insurance to be a ridesharing service. Uber and Lyft, as ridesharing services, have $1,000,000 of bodily injury liability coverage when there is a passenger in the car. Empower has none.
You might be tempted to think well, your claim just moves on to the driver's personal car coverage. You were in his car at the time, right? So that logic makes sense. Unfortunately, the answer is no.
The Empower driver's car insurance, be it StateFarm, GEICO, Allstate, whatever, is going to disclaim coverage for this incident. "Disclaim" is an insurance industry term meaning that coverage might normally apply, but there are facts here that mean the insurance does not apply. This is because the insured (the Empower driver) is driving a passenger for money. So no insurance coverage.
Here is the language from a standard GEICO insurance polocy:
Based on all of this, the Empower driver is an now an "uninsured motorist." Well, thankfully, people who own their own vehicle have protection in uninsured motorist crashes - uninsured motorist coverage. This protects you in any car accident, even if you are not in your vehicle. While some Empower passengers may have a vehicle at home, most do not. Ms X does not.
For Ms X, who has no car at home or resident relative to get coverage through, she has only one course of action remaining: to sue the Empower driver, and Empower itself. This is a lengthy process, more so in DC.
Empower vs the DC Government
The DC Government has a branch that specifically regulates and enforces the law surrounding for-hire vehicles: the rather aptly-named Department of For-Hire Vehicles, or DFHV. This department has been aware if Empower's lack of car insurance since the beginning, and has worked to bring them into compliance. But the owner of Empower, CEO Joshua Sear, has categorically refused, refusing to acknowledge that Empower is a ridesharing platform, and instead a "software service," thus beyond the jurisdiction of DFHV, and not bound the minimum liability insurance requirements, set out above.
The DC Government filed an injunction against Empower's operations in DC, ordering that it come into compliance with the insurance requirement (in addition to other issues raised by DFHV). Empower appealed the order, and a hearing was ultimately held on March 17, 2025. Jonathan Rogers, the head of the DFHV, testified in Court and confirmed that Empower has no insurance for its drivers. Again, Empower argued that it is a "software service, not a ride-failing service," and not subject to the jurisdiction of DFHV like Uber and Lyft.
This hearing came after a previous appeal to the DC Court of Appeals where that Court ruled that Empower "...is a private vehicle-for-hire company subject to DFHV's regulation."
During the March hearing, Judge Matini ruled that Empower was in contempt of court for failing to cease operations, while it remains unregistered (and uninsured!).
Mr. Sear, the Empower CEO is quoted by Reason.com, stating that his company "...will continue to ensure that its customers, who provide access to affordable transportation in some of the most underserved communities in the District, are able to continue to use Empower's software to run their own businesses."
Empower Drivers and Their Insurance Problems
Before and during the Court proceedings, many people - including Empower drivers and Empower passengers - have rallied to support the new ride service, saying it is cheaper than Uber and Lyft, and that the drivers have more independence. Unfortunately, all of these people fail to understand the serious insurance complications by using Empower, either as a driver or as a passenger (as above).
For Empower drivers, they are being hoodwinked into believing that their own car insurance will cover any damage to their vehicle, or any incident. That is patently untrue, as we've previously discussed: insurance companies deny coverage when a vehicle is used as a ride-sharing vehicle. The only way the driver's insurance will cover the loss, is if the driver lies, denying he was driving Empower - and that is committing insurance fraud. Insurance company investigators (often with departments called SIU, or Special Investigations Unit) are tracking more and more insurance claims in DC, and if they find that a driver has lied, that driver can lose insurance coverage, and also be potentially be prosecuted for fraud!
Uber and Lyft, in contrast, provide $1,000,000 of liability coverage when there is a passenger in the vehicle, which complies with applicable laws in DC, Maryland, and Virginia. Coverage is lower when the App is in "Stage 2," meaning that the driver is 'searching for' or 'awaiting' a ride, but has not accepted (simply put, the app is on).
In practical terms, aside from the horrible insurance risks, Empower drivers are left with the cost of significant repairs to their vehicles, and if they have injured someone, then they are also forced to pay for their own lawyer - and worse still, that's in addition to any settlement or judgment!
Empower Car Accidents
Empower-related accidents are getting more and more common, as more drivers switch to Empower to try to make more money, and more riders switch to spend less. These are understandable impulses, but the money you aren't paying as either a passenger or driver often covers the insurance. Insurance is something you don't really think about until you need it - and when you need it, you hope and pray that it's good. For Empower passengers and drivers, in that moment, there is nothing.
Blaszkow Legal represents numerous Empower drivers and Empower passengers who have been hurt in car accidents in DC. We fight just as hard as we do in other cases, but these cases start with the reality that, unlike regular cases that have a high-likelihood of settling, we are probably going to have to file suit. Thankfully, we are ready and able to do that, and we do it well!
If you have been hurt in an Empower car accident that was not your fault, then call Blaszkow Legal for a free consultation - 703-879-5910
Our team fights in DC, Maryland, and Virginia!
A METRO-Bus advertisement for Empower Drivers - but no mention of the serious insurance issues with the app!