Who Needs Occupational Accident Insurance?
Owner-Operator Truckers under permanent lease to a Motor Carrier buy Occupational Accident insurance to help cover medical, death, and disability claims from job-related injuries.
Occupational Accident Insurance is often called Occ-Acc.
Some companies, like FedEx Custom Critical, call this coverage Work Accident Insurance.
What Coverage does Occ-Acc include?
- Accidental Death
- Survivors Benefits
- Accidental Dismemberment
- Accidental Paralysis
- Accident Medical Expenses
- Temporary Total Disability
- Continuous Total Disability
Coverage limits can vary, but Occ-Acc policies typically range from $500,000 up to $1,000,000 or even $2,000,000.
Many plans include some coverage for non-occupational injuries, which is a nice bonus.
Just keep in mind, Occ-Acc is considered supplemental coverage—similar to vision or dental plans. It’s an add-on, not your main health insurance policy.
Health insurance, on the other hand, is primary coverage—it kicks in first when it comes to medical or hospital claims. And in “no-fault” states that require Personal Injury Protection (PIP) insurance, that also acts as primary.
Occupational Accident Insurance is usually purchased by Owner Operators under permanent lease to one Motor Carrier, and operating under their authority.
What’s the Difference between an Owner Operator and a Motor Carrier?
An Owner Operator is basically an independent contractor who owns and drives their own truck while working under a Motor Carrier’s authority.
The Motor Carrier is the company that holds the DOT Authority, which they need (according to the FMCSA) to legally haul freight for hire across state lines.
The reason it can be confusing is that people sometimes refer to small Motor Carriers as Owner Operators.
It’s just one of those things that happens in everyday conversation!
If you’re an independent contractor leased on to one Motor Carrier, you’re correctly referred to as an Owner Operator.
Often your Motor Carrier will ask you to carry Occupational Accident as part of their contract requirements.
How does Truckers Workers Comp and Occupational Accident differ?
Workers’ Compensation is a state-regulated insurance that’s designed to protect employees. It covers things like lost wages, medical bills, legal fees, and even ongoing support for work-related injuries.
But here’s the thing: if you’re an Owner Operator or Independent Contractor, you’re usually not covered under standard Workers’ Comp laws. Instead, you can opt for Occupational Accident or Work Accident insurance, which is a more affordable alternative.
Why is Occupational Accident Cheaper than Worker’s Comp?
Well, Occupational Accident insurance provides more limited coverage compared to Workers’ Comp.
For example, it doesn’t cover legal fees, and its protection is capped based on the policy limits you choose.
It’s a flexible and cost-effective option for Owner Operator Truckers.
Which states allow Owner Operator Occupational Accident Insurance?
Occupational Accident isn’t the same as Worker’s Compensation, and in some states, truckers can’t even buy this kind of coverage.
These states do NOT allow Occupational Accident for truckers:
- Connecticut
- Maryland
- Nevada
- North Carolina
How much does a Trucking Occupational Accident Policy Cost?
Occupational Accident coverage isn’t as broad as Workers’ Comp, but it is more affordable.
For most Owner Operators, the premiums run between $129 and $152 per month, depending on the truck type and liability limits.
If you operate with a smaller commercial van like a Sprinter, you’re looking at about $122 per month.
What is Contingent Liability?
Contingent Liability Insurance is designed to protect Motor Carriers from possible legal action should an Owner Operator sustain a work related injury and claims to be an employee vs an independent contractor.
Here’s what happens when the Owner Operator and Motor Carrier sign their contract:
- The Owner Operator buys his Occupational Accident Liability for his “Lessor” side of the contract
- The Motor Carrier buys Contingent Liability for their “Lessee” side of the contract
Contingent Liability covers Motor Carriers for legal defense and settlements if a court decides that an owner-operator was actually an employee, not an independent contractor.
How does an Owner Operator Buy Occupational Accident Coverage?
Any good Transportation Insurance Specialist can quote and sell you an Occupational Accident policy.
She’ll ask you for a signed application including:
- Name
- Date of Birth
- License Number & State Issued
- Social Security Number
- Driving record verification (Major and minor violations)
- Unit Type & Years of Experience
- Motor Carrier you’re leasing on to
- Medical Plan Carrier Name
- Verification of 1099 Contract type
- Duties performed (Loading/Unloading, Attached/Detach Trailer, Tarping)
Check out our easy Understand Commercial Truck Liability Videos to get the scoop on the other types of insurance Owner Operators need. Or, if you’re more into reading, head over to our CIS Truck Insurance Blog to get free advice from our 5-Star team.
Then give us a call at CIS (330) 864-1511–we’d love to chat with you!
