Important Coverages for Motor Carriers using Owner-Operators

The transportation industry is seeing an increased number of companies leasing their vehicles to owner-operators for expense savings. However, owner-operators create an inherent risk for these companies because their injuries and accidents are not covered by Workers’ Compensation like they would be as a full-time employee.

The only way for independent contractors and motor carriers to mitigate their risk is to have proper insurance coverage in place. Let’s breakdown these important coverages:

  • Occupational Accident Coverage:

Occupational Accident Insurance provides owner-operators with coverage for medical, death, and disability benefits if an on-the-job accident occurs. These policies are usually more flexible and less expensive than a Workers’ Compensation policy.

Policyholders can customize their coverage and select various limits of liability per accident, death benefit amounts, and levels of disability coverage. There are several coverage enhancements available on the policies as well, which includes an optional extension of coverage rider for Casual Laborer (Helpers) and for Passenger.

Newly hired owner-operators should all be advised to secure Occupational Accident Insurance coverage to protect them in the event of an accident.

  • Contingent Liability Coverage:

Contingent Liability Insurance protects motor carriers from independent contractors (including owner-operators) that file legal action; seeking reclassification as an employee to gain access to Workers’ Compensation benefits. These policies are issued in the name of the motor carrier and pay for reimbursements should the worker win the settlement and for court costs the motor carrier incurs during the process.

It is up to the courts to determine if an independent contractor should be considered an employee of the company.  If that determination is made, the motor carrier could be held liable for damages and other expenses related to the accident. Contingent Liability Insurance will protect your motor carrier clients from this significant financial risk.

Jencap specializes in monoline Workers’ Compensation. We have an industry-leading transportation program with broad market access and an open appetite for all risk types.  Our team of experts can place Contingent Liability and Occupational Accident coverage, along with securing your clients’ unique Workers’ Compensation needs.

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