When Do You Need Occupational Hazard Insurance for Truck Drivers

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What is Occupational Hazard Insurance?

If you are in the trucking industry, you probably know that the risk of injury due to an accident is pretty high. With today's technology causing more and more distractions, other drivers on the road are often preoccupied and not paying attention which increases the risk. Not all businesses have employees, and if you have decided to use subcontractors, whether all the time or some of the time, they are at risk for injury as well. A standard Workers Compensation insurance policy is not going to cover them since they are not a direct employee of your company. Subcontractors are not the only ones who need are at risk, though. In some states, if they so choose, employers can have the option to opt-out of having to carry Workers Compensation coverage for their employees. Employees that become injured or ill on the job will still need some way of paying for their medical bills and lost wages, which is where Occupational Hazard insurance comes in.

Occupational Hazard, also known as Occupational Accident, insurance can help bridge the gap when you are using subcontractors, or owner-operators, for your business. Just like employees, owner-operators have to continue to pay their bills when they are out of commission due to a work-related injury or illness. The benefits that are received from this type of insurance policy are similar to Workers Compensation but is designed for owner-operators instead of employees. Even though there is no law requiring it like Workers Compensation, a subcontractor can sue you, as the trucking company they are completing work for, so it is wise to purchase an Occupational Hazard insurance policy.

Do Truck Drivers Need Occupational Hazard Insurance?

Cyber extortion occurs when hackers access your sensitive data, including customer information and trade secrets. They hold this valuable information “hostage” in return for a sum of money. Hackers threaten to release this information to the public if you don’t comply with their demands.

Ransomware is a newer type of cyber extortion. In these cases, hackers download malware onto your computers or website locking you out. To remove the malware and regain access, your business is forced to make a substantial financial payment.

What Does Occupational Hazard Insurance Cover?

Some businesses think cyber extortion won’t happen to them. Here are some common scenarios where small businesses can become the victim:

  • Do you sell products online? Either from a warehouse or your kitchen table? Cybercriminals shut down these types of businesses everyday by downloading malware on a website or flooding it with too much traffic. As a sales business, you need your website up and running to make a profit. Can you afford the $10,000 demand that comes with an attack like this?

  • Many businesses store client information on the cloud or a server in their office. What happens when a cybercriminal steals client information including social security numbers and credit card information? Many times they demand thousands of dollars to return the information instead of publishing it online. And breach of client records can force a business to pay thousands of dollars in mandatory reporting costs.

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How can you Protect Your Business?

When you have made the solid business decision to purchase an Occupation Hazard or Accident insurance policy, make sure you work with an experienced agent as they sometimes can contain different inclusions and exclusions. As a business owner, you want to make sure what you are paying for is going to cover your subcontractors the most comprehensively. At the very least, your Occupational Hazard policy should have the following coverages.

  • Lost Wages – Perhaps the most important benefit of the Occupational Hazard policy is lost wages. If your non-employee truck driver is injured on the job and can't work for some time, whether a car accident or loading and unloading cargo, the policy will pay for their lost wages. Now, it will not be 100% of their normal wages, but it will be enough to help them continue to pay their bills and support their families. The hope is that they are motivated to get back to work quickly, and they will not depend on the insurance benefits for a long period.
  • Death Benefits – Should tragedy strike, it would be beneficial for you to be able to offer death benefits to the grieving family members of your hired truck driver. Certainly, if a truck driver is killed while on the job, the family will be looking to you to be responsible for it, even if you were not negligent. All they will see is that they died working for you, even as a non-employee. You can at least offer them some funeral benefits to help ease the financial burden somewhat for the loss of their family member.
  • Disability Insurance – Some work-related injuries and illnesses can cause disability. This can be detrimental if it is a full disability and causes the truck driver to no longer to be able to work. Even if they can work, but can no longer drive, it can impact their income significantly. An Occupational Hazard insurance policy can provide the truck driver you have hired as a subcontractor with disability benefits for the rest of their life. Some policies will even offer partial disability for those who can work but just can't do their normal job functions any longer.
  • Medical Payments – With any injury or illness that happens on the job there will almost always be a need to seek medical attention. An Occupational Hazard insurance policy will pay the medical bills for these events. Whether it is a small laceration from a box cutter while unloading, or a major accident that lands the truck driver in the hospital, the insurance policy will cover it. You can avoid being sued for unpaid medical bills for a work-related illness or injury by ensuring that you have this critical insurance policy for your business.

Business Insurance

Running a business is challenging enough without having to worry about lawsuits, employee injuries or property damage. Having the right insurance gives you the peace of mind to focus on what matters - running your business.

The coverage you need depends on the type of business you run. A restaurant owner needs to be covered against customers possibly getting food poisoning while an accountant needs to be covered against calculation errors. CoverWallet's intelligent assessment system will identify the insurance you need based on your specific business, get you a policy that fits your budget, and do it all in less time than you think.

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