Workers Compensation Insurance
- Workers Compensation Insurance provides coverage in case of accidents and injures sustained by your hired employees truck drivers.
- If you W2 your drivers and employess you need worker compensation insurance
- Covers employees, like company drivers and warehouse workers
- Required by law in many states
- Cost more than Occupational Accident Insurance
- Benefits are fixed by law and usually statutory
Occupational Accident Insurance
- Occupational Accident is similar to workers compensation insurance but is used for 1099 drivers and employees.
- For example owner operators.
- Less expensive than workers compensation
- Not required by law
- Limits set by insuring company
Contingent Liability Insurance
Your Contingent Liability Insurance is designed to add a layer of protection on top of Occupational Accident Insurance. For example if you have a 1099 employee who has occupation accident insurance and they get hurt on the job. Their attorney may try to prove they are not an independent contractor.
- Their lawyer may try to prove the independent contractor is actually an employee and try to attach the claim to your workers compensation policy.
- If you do not have a workers compensation policy. Their attoney may try to go after your company pocket book.
Contingent Liability Insurance can offer:
- Legal defense
- Employers’ liabiity reimebursment benefits
- Worker’s compensation reimbursement benefits
What is a 1099 or Independent Contractor
- Drives for other motor carriers
- Uses his own truck, tools, and equipment
- Hires and pays assistants
- Sets his own work schedule
- Makes profits or suffer losses
- Has a registered business license