What Is Occupational Accident Insurance?
Occupational accident insurance is like a hybrid between long-term disability and worker’s compensation. It can help businesses attract quality drivers and retain them by covering medical costs and lost wages.
It can also help cover legal costs and damages if workers file lawsuits. The cost is typically much lower than workers’ comp, and it fits companies that don’t need all the features of a traditional policy.
Coverage for Non-Employee Drivers
Occupational accident insurance is a type of workers’ compensation coverage that businesses purchase to protect themselves from liability if an employee is injured or killed while working. This type of coverage differs from the standard workers’ comp, as it’s typically designed for independent contractors or 1099 employees rather than for company-owned and/or controlled individuals. It’s often cheaper than the standard workers’ comp policy as well.
Many trucking companies today use a variety of non-employee drivers, including owner-operators and contract drivers who work for them. Unlike employees, these contractors aren’t covered by worker’s compensation, meaning that they’re more at risk of an injury on the job and may sue their employer for compensation. Without adequate coverage, a lawsuit could cost a business significant funds and put the entire company at risk of going bankrupt. Fortunately, there are ways to help reduce the risks of accidents and injuries to these non-employees, including acquiring an occupational accident insurance policy for each individual driver.
Although it’s not required by law in most states, a majority of trucking companies require this coverage from their contractors as part of their lease agreement. It’s a great way to attract the best contractors and keep them happy with the firm, as it ensures that they’ll be protected in case of an accident or injury while on the job.
Having this type of coverage also helps to deter potential litigation against the company, as it shows that the firm takes worker’s safety seriously. With the high rate of accident and injury among truckers, having a good safety program is crucial.
The insurers of occupational accident insurance policies will usually cover medical, disability, and death or dismemberment expenses stemming from a work-related incident. The coverage can also include lost wages and legal expenses resulting from a claim. Many emerging classes are taking advantage of this cost-effective coverage, ranging from warehouse auditors to groups that set up grocery store displays!
While the specifics of an occupational accident policy vary, most will cover injuries or fatalities that occur during a trucking trip or at a trucking-related activity. They’ll also typically include passenger and personal property coverage, as well as additional optional benefits such as temporary total and permanent disability and accidental death or dismemberment.
Coverage for Owner-Operators
Occupational accident insurance is a type of contingent liability coverage that functions similar to workers’ compensation insurance but is primarily used for independent contractors. In the trucking industry, it’s commonly purchased by owner-operators as a requirement in their contract with motor carriers or by trucking companies as part of their own workers’ compensation package. In either case, the primary benefits of the policy are medical, disability, and death benefits for work-related incidents.
The main benefit of this type of coverage is that it’s less expensive than workers’ compensation insurance. In fact, it can cost half as much for the same coverage. It’s also a great option for trucking companies as they can provide this to their employees while still meeting their legal obligations in states that don’t require them to carry workers’ compensation coverage.
However, there are a few important things to consider with this type of coverage. Firstly, it doesn’t cover legal expenses which can be a major expense during a claim. Additionally, it doesn’t typically cover accidents that are not work-related. Therefore, it’s important for business owners to carefully consider these risks and whether this coverage is right for them.
If you suffered a work-related injury or illness, consult with the experienced workers’ compensation lawyers. They can review your options and help you file a personal injury lawsuit against the negligent party responsible.
While many retail agents overlook occupational accident insurance or fail to cross-sell it to their trucking clients, it’s a valuable piece of protection that can protect both independent drivers and fleets financially. Without it, a company may be drawn into a lengthy legal battle with an owner-operator who is seeking Worker’s Compensation coverage. This could put their assets in jeopardy and make it difficult to get back on the road. With this coverage, a trucking company can avoid such costs and ensure that all of their leased drivers are protected with known limits.
Coverage for Damages
Many businesses choose to purchase occupational accident insurance for their independent contractors or owner-operators. It is much less expensive than a traditional workers’ compensation plan. It is also more flexible, as the policyholder can choose their deductible, limits and coverage for disability.
However, it is important to note that if the policyholder does not have this coverage and an employee gets injured, they will be responsible for all of the legal costs and damages out of pocket. The best option is to get the proper coverage, as it is worth the investment.
Occupational Accident insurance offers a cheaper alternative to workers’ comp and a simpler claims process. It covers medical expenses, lost wages and death benefits up to the policy limit. It can be purchased by employers as a supplement to their workers’ compensation insurance or independently by truckers as a standalone policy. It is designed to cover the needs of a variety of industries including trucking, construction, retail and manufacturing.
In the trucking industry, occupational accident insurance is a popular option for owner-operators and 1099 workers. The complexities of the trucking business model means that it is common for employees to work as independent contractors, and this type of insurance can help with their protection in case of an injury or illness. It can also be a good way to avoid costly lawsuits against the company in the event that an accident or injury occurs on the job.
As with any insurance, the cost of occupational accident insurance will vary based on several factors. Some of the biggest factors include how many independent contractor employees are covered, the insurance carrier and policy limits. It is often helpful to talk with a professional insurance broker who can help you understand the various options and coverage levels available for this type of policy. Liability Insurance Agency insurance development is an example of a broker who can provide expert advice on this type of policy and is a great resource for helping your clients make the best choices for their needs. Contact them today to learn more about their services.
Coverage for Legal Defense
Many companies choose occupational accident insurance over a traditional workers’ comp program because it is often less expensive. However, it leaves a business susceptible to a lawsuit from employees and owner-operators who feel they are not getting the benefits they are entitled to under the plan.
A good trucking insurance agent understands the value of this coverage and can help clients select an appropriate policy that meets state regulations. Adding a Workers’ Compensation and Contingent Liability policy can round out the coverage to protect a company from liability should an employee sue over work-related injuries.
Occupational accident insurance covers the basic needs of an injured driver, including lost wages and medical expenses up to a set limit. Depending on the policy, businesses can also opt for a deductible and disability coverage. In addition, many policies can provide for guest passenger accident coverage, covering accidents caused by non-leased drivers who are not insured under a company’s workers’ compensation policy.
In the past, many trucking firms opted for this type of coverage because it costs half as much as a standard workers’ comp policy and it does not require the company to pay any legal fees if an employee files a claim. In addition, it can be written with flexible terms that allow a business to customize the coverage for their specific needs.
It is important to note, however, that occupational accident policies do not include legal defense and a separate policy would be needed to cover this cost. Having an experienced trucking injury attorney on your side is essential to fighting for the benefits you are owed. Having someone who can navigate the tricky waters of insurance claims and the games that are sometimes played by employers and insurance companies will make it more likely you receive what you are owed.
Liability Insurance Agency is a full-service MGA with extensive experience writing both fleet and individual occupational accident policies for trucks, trailers and non-trucking liability. We can also write Worker’s Compensation, Contingent Liability and Physical Damage policies to help create comprehensive programs for client fleets and owner-operators. Our team is well versed in the ins and outs of the industry and has strong partnerships with top-rated carriers to ensure we can match clients with the best options for their unique needs.