Tag: workers compensation

Inside an Auditable Insurance Policy

Western Truck Insurance

An auditable insurance policy is one in which the premiums the insured pays are based on payroll and/or sales projections at the start of the policy term and then adjusted based on actual figures at the end of the term. Auditable policies are typically used with Workers’ Compensation and Commercial General Liability insurance, but can apply to Motor Truck Cargo and Auto Liability as well.

How an Auditable Policy Works

  • When a business purchases an auditable insurance policy, the insurance company bases the premium on the estimated sales revenue or payroll for the period.
  • The premium is divided by the payroll or sales revenue and a rate (percentage) is computed which becomes the figure  used for the audit calculation at the end of the policy.
  • The estimated premium is paid by the policyholder as with any usual policy.
  • The insurance company will perform a premium audit at the end of the policy to determine the actual exposure that occurred during the policy period. The auditor will review payroll data, time sheets, financial statements, employee classifications, sales records, and other relevant information.
  • Based on the audit findings, the insurance company calculates the actual premium that should have been charged, based upon the initial quoted rate, for the policy period. If the actual exposure is higher than initially estimated, the insured will need to pay additional premium. Conversely, if the actual exposure is lower, the policyholder may receive a refund or credit. One should inquire with their agent if a refund is applicable or not on the policy being provided, as not all policies are eligible for refund.

Auditable insurance policies provide a way for businesses to obtain coverage while taking into account the changing nature of their operations or exposure over time. These policies are particularly common in industries where factors like payroll, sales, and operations can fluctuate significantly.

It’s important for businesses to keep accurate records and cooperate with the audit process to ensure that the final premium adjustment is accurate.  If, upon the receipt of the audit the policyholder disagrees with the findings, they are offered the opportunity to dispute those findings and sort out any errors or mis-calculations that may have occurred.

About Western Truck Insurance Services

Western Truck Insurance Services is an insurance brokerage specializing in commercial truck insurance, including Commercial General Liability and 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.

Catering Truck Insurance

Bob Holtzman

What to Know About Catering Truck Insurance

Food trucks have grown in popularity in recent years. Many consumers appreciate the fact tasty food can be delivered to their home or business. If you operate this kind of vehicle, then it is vital to get it insured. It needs to be insured no matter what because it is a vehicle, but if you sell food, then you need to obtain a specialized catering truck insurance policy. When pursuing this, it is vital to keep several points in mind to get the best coverage out there.

Buy From an Experienced Food Truck Insurance Agent

Since food is being sold from the truck, different types of policies are required. That means an operator of a catering truck needs more than simply a standard auto insurance policy. For this reason, it is good to work with an agent who has dealt with catering trucks in the past. Someone who has never done this before may be willing to take on the job but does not understand everything that needs to go into the policy. Experience matters in the insurance world.

Get Every Policy You Need

Owning a company vehicle usually requires the owner, whether it is an individual or company, to have commercial auto insurance. A catering truck requires much more than that, such as:

  • Auto Liability Insurance: Vehicle insurance should cover damage caused by collisions and damage caused by fire or other natural disasters. It is also good to acquire uninsured coverage in case you end up in an accident with someone else lacking insurance.
  • Commercial Property (Equipment) Insurance: This covers additional property you own outside of the truck. That includes kitchen equipment and any computers you need to operate the day-to-day actions.
  • Commercial General Liability Insurance: This insurance protects you in case of property damage or injuries you cause in your food services business.. If the food from your truck makes someone sick, then  commercial  general  liability coverage protects you. 
  • Workers’ Compensation Insurance: Various employees need to work on a catering truck including the driver and  the cooks in the back. You need to ensure employees injured in a vehicle collision or from getting hurt in the kitchen have safeguards in place.

Catering truck insurance technically consists of several different coverages, and they are all essential. Professional brokers will assist you in finding a policy that covers everything you need, so you can operate your business with peace of mind.