You hold the drivers who work for your trucking company to rigorous safety standards. Nevertheless, accidents can and do occur, sometimes due to circumstances beyond the control of either you or your drivers, such as the behavior of others on the road or weather conditions. Occupational accident insurance is similar to workers’ compensation in that it covers expenses for drivers who sustain injuries on the job. However, they are not interchangeable with one another.
Who Is Covered by Occ/Acc Insurance?
Workers’ compensation insurance covers the drivers that you hire as employees, i.e., those whom you pay on a W2. Depending on how many employees you have on the payroll, the government may require you to carry workers comp insurance. However, as Western Truck Insurance Programs explains, occupational accident insurance covers owner-operators whom you hire as independent contractors, i.e., those you pay on a 1099. The law does not require occ/acc insurance, but it may be a good idea to have it.
What Are the Benefits of Occ/Acc Insurance?
Independent contractors are not entitled to employee benefits like workers’ compensation. However, they are free to sue the company they’re working for should they become injured while performing their contracted duties. Occ/acc insurance provides independent contractors financial relief after an injury while protecting you from lawsuits.
The laws that regulate occupational accident insurance vary by state. Be sure you understand the applicable rules.