Truckers Have It Tough – Protect Yourself!
Thursday, January 24, 2013
The trucking industry can be a very dangerous business. It is essential to have the right coverages in place in order to protect yourself or your employees, in the event of an on-the-job accident. Some may think Workers Compensation and Occupational Accident insurance are interchangeable. However, these two coverages serve two different business populations.
Generally, independent contractors who lease their equipment and services to another entity are not covered by their employer’s Workers Compensation policy because they are not considered employees. These individuals are candidates for Occupational Accident insurance. A standard Occupational Accident policy will cover the independent contractor for work-related accidents resulting in medical expenses, disability, dismemberment or even death.
Unlike Workers Compensation, Occupational Accident policies are not regulated by the government. Occupational Accident policies also place restrictions on coverage terms, exemptions and limits. Such restrictions vary by policy and should be reviewed carefully. On the flip-side, one of the advantages of choosing Occupation Accident insurance is the premium, which tends to be a lower rate than Workers Compensation policies.
In all states except for Texas, businesses are required to provide their employees with Workers Compensation. Some states do not mandate the coverage unless the business has exceeded a certain number of employees. However, most states require employers to provide the coverage even if they only have one employee. Just as Occupational Accident covers the independent contractor, Workers Compensation covers employees for their work-related injuries. While independent contractors must purchase Occupational Accident coverage for themselves,Workers Compensation is paid for by the employer.
Still not sure which insurance coverage you need? Here’s a helpful tip: if you receive a 1099 at year end, you are usually considered an independent contractor and should purchase Occupational Accident insurance if you want to protect yourself and your finances in the event of a work-related injury. If you receive a W-2, you are an employee and should be covered under your employer’s Workers Compensation policy.
For more information on Occupational Accident and Workers Compensation or to receive a FREE quote, please contact the Mid South Truckers Group toll free by dialing 888-321-1015. Our experienced team members look forward to hearing from you soon!