Workers’ Comp or Occ/Acc: what’s right for your trucking business?
If you’re a truck driver (or run a company that employs truck drivers) you may be wondering if you could handle the serious financial hit that often comes with an accident or injury on the job. Workers' Compensation and Occupational Accident (Occ/Acc) are proven ways to provide peace of mind behind the wheel.
But which is right for you? We’ll help you cruise through the confusion.
ALL ABOUT WORKERS' COMP:
Do you own a transportation company and employ full-time drivers to carry freight?
Most states require you to carry Workers’ Comp. Many contracts with partners, vendors and customers require it as well.
If one of your employees gets into an accident on the job (whether he or she is on the road or unloading cargo on a dock), Workers' Comp will provide medical benefits and lost wages so you don’t have to. The best part: Workers’ Comp shields you from most employee lawsuits.
Important to know: Workers’ Comp is highly regulated. Each state decides how much a policy will pay out based on industry, earnings and other factors. A licensed Mylo agent can give you all the details.
Do you use independent contractors instead of full-time employees?
Several states require these drivers to be covered by Workers’ Comp even if they’re not full-time employees. Good news: you can purchase Contingent Workers’ Comp. It only kicks in when your drivers need it, instantly covering them in relevant locations. So your business is protected even if your driver takes a wrong turn across the California state line.
ALL ABOUT OCCUPATIONAL ACCIDENT:
Do you either drive under your own authority or drive for someone else as an independent contractor?
If you don't have a full-time employer, you won’t be receiving Workers’ Comp if you have an accident. But that doesn’t mean you have to wreck your finances. You can purchase Occupational Accident (Occ/Acc) to take its place.
Occ/Acc helps pay your medical and other expenses if you have an accident or injury on the job.
Keep in mind these key differences with Workers' Comp:
1) Occ/Acc doesn’t have specific payouts and other restrictions set by states. Your payouts can vary by policy, so be sure to know what yours are. Good news: you can often customize your policy by choosing your payout limits, preferred health care provider or other options.
2) You’re not legally required to carry Occ/Acc. That means it’s on you to make sure you can handle the bills if you decide to take a pass on this coverage.
What happens if you get into an accident while driving home after a job?
Sorry! If you run into trouble while you’re driving your rig and not on dispatch, Occ/Acc won’t pay for it. But your individual health care plan should cover these situations. (Health insurance for the win!)
Do you own a transportation company and employ independent contractors?
You can offer Occ/Acc insurance to your drivers as a perk that will help you recruit and retain top talent.
FINDING THE RIGHT WORKERS' COMP OR OCC/ACC PLAN:
Whether you own a transportation company or drive under your own authority, you’ll want to anticipate everything that could go wrong, from dropping heavy freight to dodging texting drivers. Mylo can help you find customized coverage that will keep you on your favorite road. To success!
A licensed Mylo agent can steer you to the coverage that makes sense for you based on your business needs. Give us a call and get a custom consultation for a business on the move.