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Filling the Gap: Accident Coverage for Independent Truckers

Filling the Gap: Accident Coverage for Independent Truckers

For most employers, the risk of a work-related injury or death of an employee is mitigated somewhat by the workers compensation coverage that most states require companies to carry. Such coverage, however, extends only to salaried employees.

Who Is Responsible?

Companies that utilize 1099 contract workers like owner-operated truck drivers face a conundrum. It is a given that accidents can and do happen in the trucking industry. It is also a given that independent drivers are not covered by a workers comp policy. So, who pays in the event of a serious accident involving an owner-operated truck?

Ultimately, the employer & the company employing the driver on a contract basis & is responsible. Left uninsured, a business is exposed to tremendous financial and legal consequences. Occupational insurance is one way to fill this gap in coverage.

What Does It Cover?

Accident insurance for truckers varies depending on a company's needs, and policies can be tailored as such. Still, most policies include the following:

  • Accidental death and/or dismemberment benefits that are normally determined by a formula that factors in a contractor's annual earnings
  • Payment of medical claims arising from a single incident
  • Disability benefits that pay a portion of the employee's salary for a prescribed amount of time

Provisions can also be added to occupational insurance policies to cover legal fees should a 1099 worker sue the company. Consider your needs and budget and consult an experienced insurance agent or broker today. Don't count on that accident not happening to you.