Last Updated: January 26, 2022
When working in the commercial truck industry, you are probably aware of the high risk of injury due to an accident. With today’s technology causing ever-increasing distractions, other drivers on the road are frequently preoccupied and not paying attention, increasing the risk. Not all businesses have employees, and if you have decided to use subcontractors, whether full-time or part-time, they are also at risk of injury. Because they are not a direct employee of your company, a standard Workers Compensation insurance policy will not cover them. However, subcontractors are not the only ones who are at risk.
What Does Occupational Insurance Cover For Truck Drivers?
Occupational Insurance For Truck Drivers refers to Occupational Hazard, also known as Occupational Accident, insurance, which can help bridge the gap when your business employs subcontractors or owner-operators. Owner-operators, like employees, must continue to pay their bills while out of commission due to a work-related injury or illness. The benefits provided by this type of insurance policy are similar to those provided by Workers Compensation, but it intends for owner-operators rather than employees. Even though there is no law requiring it, a subcontractor can sue you as the trucking company for which they are working, so it is prudent to purchase an Occupational Hazard insurance policy.
How Does Occupational Insurance Work?
Occupational accident coverage does provide some protection for accidents or injuries that occur while a person is at work. Optional coverage typically costs about half as much as workers’ compensation coverage. It may be appropriate for businesses that do not require all of the benefits that a comprehensive workers’ compensation policy provides.
Occupational accident insurance can cover lost wages, medical expenses, and death benefits up to the policy limit. Furthermore, businesses can select the deductible, limitations, and disability coverage they want to purchase.
On the other hand, occupational accident insurance typically provides little or no coverage for legal expenses for high-risk trucks. Because policies do not cover defense costs, business owners must understand that they assume financial risk.
As an employer, you are liable to any legal obligations owed to an employee that are not covered by your occupational accident insurance. The lower initial cost can sometimes blind business owners to the possibility of massive lawsuit losses.
Choosing the wrong coverage options could expose your company to financial obligations that are beyond its ability to handle. This is especially concerning because there are very few statutory limitations for occupational accident lawsuits. In theory, an injured or ill person could file a case at any time.
In lawsuits, employers must also bear the burden of proof. In other words, the company must demonstrate that the injury or illness was not, or is no longer, the cause of the individual’s condition. Not only legal fees but also investigative costs may be included.
Lawsuits filed by aggrieved parties are frequently lengthy, complex, and expensive. As a result, it is critical that you have an appropriate policy limit. Policy limits can range from $1M to $5M, and employees can potentially win judgments for pain and suffering and punitive damages that exceed the policy limit.
Occupational accident policies should also include contingent liability coverage, allowing coverage to revert to state limits if the worker relocates to another state.
Occupational Accident Insurance Vs Workers Compensation
Workers Compensation, in a nutshell, provides coverage in the event of an accident or injury sustained by your hired truck drivers. On the other hand, Occupational Accident Insurance extends similar protection to independent contractors. Owner-operators leased onto a Motor Carrier are not considered employees, but independent contractors, so many choose Occupational Accident coverage.
So, which type of insurance is best for you? It is dependent on your workforce as a motor carrier. Workers Compensation is required if your drivers are employees who are paid on a W2. If they are leased to you, and you pay them on a 1099 basis, then you require to have OCC/ACC.
|Truckers Occupational Accident Insurance||Workers Compensation Insurance|
|Covers independent contractors||Covers employees, like company drivers and warehouse workers|
|Not required by law||Required by law in most states|
|Less expensive||More expensive|
|Limits, deductibles, and payout amounts decided by motor carrier’s occ/acc policy||Benefits are usually statutory and fixed by law|
What is truckers occupational accident insurance?
Owner-operators and contract drivers can benefit from Truckers’ Occupational Accident Insurance. Accidental death or dismemberment, accident-related medical expenses, and temporary or continuous total disability are all covered under the policy.
How does occupational insurance work?
Occupational Accident Insurance provides financial protection to both employees and employers in the event of an on-the-job injury. The coverage amount is determined by several factors, including the perceived risks of employers and their workplaces.
Is OCC ACC insurance required?
If your drivers are leased to you, and you pay them on a 1099 basis, then you require to have OCC/ACC.
What is considered an occupational accident?
Occupational Accident is considered as an unexpected and unplanned occurrence, including acts of violence, that occurs during or in connection with work and causes personal injury, disease, or death to one or more workers.