It’s no secret that if you drive a truck, you’re going to need insurance. This includes the main general, auto, cargo liability, physical damage, and worker’s compensation insurance at the very least. Regulations and requirements state exactly what kind of insurance you or your employees must carry. However, once your employees no longer claim W2 status, those regulations get a little dicey. Independent contractor insurance is something that motor carriers and owner-operators should both be aware of. You never know when you’ll need to hire a subcontractor, and you don’t want to be without insurance.
Let’s face it, trucking companies are going through historic risks and issues right now. Due to increased costs and rising rates, many drivers are operating without sufficient insurance. This is a huge risk that can easily cause your business to collapse with even the smallest problem. This becomes especially true with unregulated independent truckers. If this sounds like your business, you could save some money if you knew about Occupational Accident Insurance, or OCC/ACC.
What is OCC/ACC?
OCC/ACC offers some of the same benefits as workers’ compensation but at a much lower price. It is important for Motor Carriers to understand the owner-operators they work with. Misrepresentation is a huge problem between contractors and employees, which can result in improper compensation, failure to withhold proper taxes, and worker’s compensation eligibility. All of this could be costly or unsafe, so it’s important to be clear with every person who you work with.
Many owner-operators like the freedom that comes with being an independent contractor. If that is the case, it is important to do your due diligence on the owner-operator to make sure everything is up to proper standards. That includes insurance requirements and, of course, licensing and bonding. However, it’s also important to be clear about the rights of an independent contractor. For instance, if an independent contractor is injured, they will not be able to file for worker’s compensation like a W2 employee could. That means it’s up to your independent contractor to insure themselves and it’s your responsibility to make sure they’re properly informed of their options. This way, everyone can work with peace of mind and a fair understanding of the risks.
Truck Insurance Options for Your Independent Contractors
We here at Safeline Insurance understand that it’s not easy out there for an owner-operator or Motor Carrier. However, it’s important to make sure your business is properly covered. This can help prevent further problems down the road that could cost your business. Whether you’re working with independent contractors, a fleet of hundreds, or just your own truck, we can help. Give Safeline Insurance a call and let our team of insurance professionals walk through your business. We can check to see where you need coverage and even if you’ve been overpaying. With live agents with decades of experience, there’s nothing we can’t do to help you. Give us a call today for a free quote and see how much money you can save today.