Tag: Workers’ Compensation Insurance

On the Road with Workers’ Compensation and Occupational Accident Injury Insurance

Western Truck Insurance

Workers’ Compensation and Occupational Accident Injury Insurance are two distinct types of coverage designed to address different aspects of workplace injuries in the trucking industry.

Workers’ Compensation Insurance

A statutory form of insurance, Workers’ Compensation insurance provides benefits to employees who suffer work-related injuries or illnesses. It is designed to protect both employees and employers in the event of workplace accidents. The policy typically covers medical expenses, rehabilitation costs, and a portion of lost wages for employees who are injured or become ill while performing job-related duties. It may also provide benefits to the dependents of workers who suffer fatal injuries.

Employees are entitled to benefits regardless of fault, and, in exchange, they generally cannot sue their employer for negligence in most cases. The coverage helps ensure injured workers receive prompt medical care and financial support, promoting a quicker return to work.

Occupational Accident Injury Insurance

This policy covers medical expenses, disability benefits, and accidental death benefits for independent contractors or owner-operators who are not covered by traditional Workers’ Compensation insurance.

Occupational Accident Insurance is customizable, allowing individuals to choose coverage limits and benefits tailored to their needs. It may cover medical expenses, disability income, accidental death and dismemberment benefits, and other related costs resulting from work-related injuries.

Unlike Workers’ Compensation, Occupational Accident Injury Insurance is not mandated by state law. It is a voluntary coverage that independent contractors or owner-operators can purchase to protect themselves in case of work-related injuries, or the policy can be sponsored by a motor carrier.

In sponsoring Occupational Accident Injury Insurance, motor carriers can attract and retain independent contractors by providing them with a measure of protection in the event of work-related accidents or injuries. Furthermore, providing this coverage can assist motor carriers in differentiating themselves from their competition. It demonstrates that the motor carrier cares about the general well-being and safety of its independent contractors. When it comes to hiring and maintaining experienced independent contractors, this can be a big selling point.

It’s important for trucking companies to carefully evaluate the makeup of their workforce, including employees and independent contractors, to determine the appropriate insurance coverage. In many cases, a combination of Workers’ Compensation for employees and Occupational Accident Insurance for independent contractors may be the most comprehensive approach to address the diverse needs within the trucking industry.

About Western Truck Insurance Services

Western Truck Insurance Services is an insurance brokerage specializing in commercial truck insurance. We know this stuff and want to make sure you do, too. Our clients appreciate our dedication to finding competitive rates and offering unparalleled service beyond excellent insurance options. They also value how our state-of-the-art automation provides lightning-fast truck insurance quotes, customer service, insurance certificates, and coverage changes. Contact us today at (800) 937-8785 to learn more.

Ensure Smooth Workers’ Compensation Premium Audits 

Western Truck Insurance

Workers’ Compensation insurance provides coverage for employee on-the-job injuries and illnesses. A business pays an estimated premium at the beginning of the year that is based on a number of factors, including payroll; industry classification (different industries have varying levels of risk with regard to workplace injuries and illnesses); employee classification (a driver is at greater risk of an on-the-job injury than an office worker, for example); experience modification, which is based on actual losses/expected losses; and other factors.

Premium audits are conducted by the insurance companies to ensure that the employer’s payroll and employee classifications are correct and that there isn’t a premium overpayment or underpayment. A business undergoes operational changes or changes in workforce size during the year that would impact the payroll and, subsequently, the Workers’ Compensation premium. In addition, employees may mistakenly be misclassified which would also impact the premium.

Audits are typically performed once a year; although, the exact schedule may vary based on the insurance policy and the rules of the jurisdiction. The audit period is usually limited to a specified time frame, such as one policy year. It is typical for the audit to take place shortly after the policy year ends or when the policy is renewed.

During the audit, the insurance company representative or independent auditor will analyze the employer’s data, including payroll records, employee classifications, and other pertinent documentation.

It’s best to be well prepared for an audit. The California State Fund provides helpful information on getting audit-ready here. Some of the documents you will be asked to provide for the audit include the following:

  • Payroll Records: This includes records of wages paid to employees, hours worked, overtime pay, bonuses, commissions, and any other kinds of compensation. Individual employee information should ideally be included in these records, which should be grouped by pay period.
  • Timesheets or Timekeeping Systems: If your business uses timesheets or a timekeeping system, these records should be available to show how many hours employees worked. This can aid in the validation of payroll computations and the appropriate reporting of earnings.
  • Certificates of Insurance: Employers may be required to present insurance certificates for any subcontractors or independent contractors they worked with during the audit period. This is used to show that all workers are covered.
  • Tax Forms: These include W-2 and W-3 paperwork, 1096 and 1099 forms, and payroll tax filings.
  • Financial Statements: These include profit and loss statements or balance sheets to support an employer’s reported payroll data.
  • Business Records: Other relevant business records, such as general ledgers, sales records, contracts, invoices, or work orders, may be required, particularly if the company operates in various areas of work or engages in subcontracting.

About Western Truck Insurance Services

Western Truck Insurance Services is an insurance brokerage specializing in commercial truck insurance, including Workers’ Compensation. We know this stuff and want to make sure you do too. Our clients appreciate our dedication to finding competitive rates and offering unparalleled service beyond excellent insurance options. They also value how our state-of-the-art automation provides lightning-fast truck insurance quotes, customer service, insurance certificates, and coverage changes. Contact us today at (800) 937-8785 to learn more.

Workers’ Compensation in the Trucking Industry

Bob Holtzman

For trucking professionals, taking care of yourself behind the wheel can already be more complicated given the payload you’re hauling. But when you throw other moving vehicles, winding roads, various weather conditions, and government regulations into the mix it makes the job even more of a liability. This is why workers’ compensation packages are so important in the trucking industry, and so often used compared to other industries.

For instance, in Washington, one in every 13 truck drivers suffered some sort of injury annually. With this in mind, it’s important for trucking professionals to understand the need for an effective workers’ compensation program.

How Workers’ Comp Works

Most people know the basics of workers’ compensation, in so much as it’s a government-required way to protect employees of all industries who may become injured on the job. Given the element of danger that comes with trucking, having protection in place to cover things like illness, disability or disfigurement that occur because of the job itself is a necessity.

Another piece of protection that is just as valuable is having commercial truck insurance for the companies trucking individuals work for. Commercial truck insurance is an effective piece of coverage that provides protection for trucking companies in the event a claim is made, saving a company financially during litigation.

When it comes to financial support for employees, workers’ compensation provides this kind of help to cover medical costs, lost wages, or disability payments. Employees need to report any injury or illness as a result of their job to their employer and file a claim immediately.

Workers’ Comp in Trucking

On the level, workers’ compensation works no differently in trucking as compared to other industries. The basics are the same to a certain degree: an employee is injured, they make a claim, and they are provided for financially and legally. But one thing to note, however, is that many truck drivers are not necessarily employees of a commercial trucking company. Many truck drivers are owner-operators who are not considered an employee for the trucking company; meaning the company is not required to make a workers’ comp payout if a driver is injured.

For those owner/operators, the trucking company CAN elect to include them in their workers’ compensation program if they choose to.  Or, they may select another alternative, called Occupational Accident Injury Coverage, where the owner operator purchases his own coverage for medical benefits and some disability coverage in the event of an injury while on the job.

The entire configuration of workers’ comp for employees and  Occ/Acc coverage for independent contractors can be very confusing and the many variables that need to be considered play a role in determining the best solution. This is where a trained insurance broker will assist in the process.

Regardless of the situation, understanding workers’ compensation limits and the importance of commercial truck insurance can make a huge difference in financial and legal issues down the road.

About Western Truck Insurance Services

Western Truck Insurance Services is a commercial truck insurance agency with roots dating back to 1954. We have evolved into a highly respected, professionally managed, truck and transportation insurance brokerage. The hallmark of our organization is our desire to provide unparalleled service. We go way beyond what you expect to receive from an insurance brokerage. Equipped with state of the art automation, Western Truck Insurance can provide you with lightning fast truck insurance quotes, customer service, Insurance certificates and coverage changes.

The Difference Between Workers’ Compensation and Occupational Accident Injury Insurance for Trucking Operations

Bob Holtzman

Trucking companies across the country make it their mission to create safe and productive work environments for their employees on the road and in their warehouses. Even though trucking operations put their best foot forward to instill safety and accountability, there are still workplace injuries that occur, resulting in high loss of wages and reduced productivity each year.

To protect against liabilities, there are multiple insurance options that can help safeguard a company from more risk and more legal battles. Among these are two main types of commercial truck insurance: workers’ compensation insurance and occupational accident insurance. While they seem similar initially, they do have glaring differences. Let’s take a look at some now.

Occupational Accident vs. Workers’ Comp

Workers’ comp provides wage replacement and medical benefits to hired employees and occupational accident insurance offers similar pluses, but focus on independent contractors. Finding the right coverage depends on the workforce.

Occupational Accident

Companies in essence aren’t legally bound to pay for the medical, disability, death or dismemberment benefits of independent contractors. This is because contractors aren’t technically employees. However, when a contract worker is injured somehow help still needs to be provided.

Independent contractors who get hurt on the job sometimes sue the trucking company they have been hired by. They sometimes claim to be full-time employees to try to get legal compensation. This is where occupational accident coverage steps in.

This kind of coverage doesn’t automatically cover the same statutory limits that workers’ comp does, but it is an alternative for the independent contractor to protect himself and at much more reasonable cost than traditional workers compensation. Motor carriers usually purchase a small workers’ compensation policy to cover hired employees and add occupational accident policies to cover their contract drivers.

Workers’ Compensation

By law all businesses are required to pay lost wages and medical bills for their hired employees if they are hurt on the job. Most business owners choose to purchase this insurance to protect themselves and cover the employee if one gets hurt on the job.

It’s important to not only invest in coverage, but pick the best commercial truck insurance option that’s right for your employees and/or independent contractors. Depending on the state you’re located, there may be options to cover your workers’ comp through an occupational accident program. Work with your insurance provider to find out which is best for you.

About Western Truck Insurance Services

Western Truck Insurance Services is a commercial truck insurance agency with roots dating back to 1954. We have evolved into a highly respected, professionally managed, truck and transportation insurance brokerage. The hallmark of our organization is our desire to provide unparalleled service. We go way beyond what you expect to receive from an insurance brokerage. Equipped with state of the art automation, Western Truck Insurance can provide you with lightning fast truck insurance quotes, customer service, Insurance certificates and coverage changes.