Trucking businesses and truck drivers alike are often required to have workers' compensation insurance. Trucking workers' comp can help cover expenses related to injuries and illnesses that occur because of job duties or the work environment. Without this coverage, independent truckers and trucking business owners could be stuck paying out-of-pocket to cover various incidents.
Fortunately, a local independent insurance agent can help you find the right workers comp' for trucking companies. They'll get you matched to the appropriate amount of coverage for the job. But first, here's a closer look at truckers' workers' comp insurance, what it covers, and why it's necessary.
Do Trucking Companies Need Workers' Comp?
Workers' comp for owner-operator truck drivers' requirements vary by state. For example, trucking companies in Alabama must carry workers' comp if they have at least five employees, but those in New York must have coverage for any employees, even part-time trucking workers. Check your state's specific workers' compensation laws and requirements to determine if your trucking business must provide workers' comp.
Even if coverage isn't technically mandated in your area, having workers' comp could help your business avoid costly lawsuits and limit its liability if one of your truckers gets injured, ill, or dies due to their job. If your trucking business offers workers' comp, it's exempt from employee lawsuits for related incidents. Family members of the affected employee also cannot sue a trucking business if workers' comp is provided. Offering workers' comp can help your trucking company save thousands of dollars or more from a single incident, let alone multiple.
Is Workers' Comp for Owner-Operator Truck Drivers Required?
Independent truck owner-operators aren't typically required to carry workers' comp. However, independent contractors and sole proprietors may still want to strongly consider getting workers' comp insurance. Without this coverage, you'll likely have to pay out-of-pocket for work-related accidents that result in injury, illness, or disability. You could also lose out on wages during time off work to recover.
Workers' comp often replaces up to two-thirds of lost wages while an injured or ill employee is recovering from a covered incident. This time off work can be very expensive for truckers who lack coverage. Further, private health insurance typically doesn't cover work-related injuries or illnesses.
What Does Workers' Comp for Truck Drivers and Trucking Companies Cover?
Workers' compensation coverage can pay for many costs associated with job-related injuries, illnesses, etc. A trucking workers' comp insurance policy operates under a no-fault system and can reimburse you for the following:
- Medical expenses
- Disability benefits
- Death benefits
- Lost wages
- Rehabilitation expenses
- Retraining
If a trucker dies due to occupational hazards in their work environment or from on-the-job duties such as loading and unloading cargo, workers' compensation can provide death benefits to their surviving family members or other beneficiaries.
How Much Is Workers' Comp Insurance for Truck Drivers?
The cost of a trucker's workers' comp policy can depend on a number of different factors. These can include the following:
- The insurance company that underwrites your coverage
- The amount of workers' comp coverage you need
- The number of employees you insure
- The classification of the employees you insure
- Your business's operations and exposures
- Your business's history of workers' compensation claims
An independent insurance agent can help your business get set up with affordable workers' compensation coverage and any other types of trucking insurance it needs.
Trucking Workers' Comp Class Codes
When purchasing workers' compensation coverage, business owners must classify their employees by their job duties and employment status, such as full-time or part-time. Employers rely on class codes set by the National Council on Compensation Insurance (NCCI) to categorize their workers. These class codes determine the cost of your workers' comp policy by setting base manual rates for each type of insured employee.
In 2018, the NCCI combined codes for long-haul drivers and local drivers. Today, some of the most common truck driver workers' comp class codes are as follows:
- 7219 for dump truck operators, gravel and sand haulers, automobile hauling, snow removal, and mobile home delivery
- 7230 for package delivery to retail stores and retail customers
- 7231 for mail, parcel, or package delivery (i.e., UPS, FedEx, and Amazon)
- 7380 for drivers and messengers
- 7232 for trucking companies contracted with the US Postal Service (USPS)
Check the NCCI index of class codes for the trucking industry so your business can properly classify its workers. Failure to classify your employees correctly can result in harsh penalties for your business, such as fines or forced temporary closures.
An Independent Insurance Agent Can Help You Find Workers' Comp for Truck Drivers
When it's time to find the right workers' compensation insurance to protect your motor carrier business's team, no one's better equipped to help than an independent insurance agent. These agents have access to multiple trucking insurance and workers' comp insurance companies, so they can shop and compare policies and rates for you to find the best policy. And down the road, your agent will still be there to help you update your coverage as your business evolves and can even file workers' comp claims for you.
Sources
https://www.workerscompensationshop.com/workers-comp-programs/trucking-insurance
https://www.insureon.com/trucking-business-insurance/workers-compensation
