Occupational Accident Insurance (OAI) for truckers is a type of insurance that provides medical, disability, death and dismemberment benefits for accidents that occur on the job. It is not the same as workers’ compensation, but it is a reasonable form of accidental injury protection. OAI can be purchased by the owner-operator or by the motor carrier, and it may be required by the trucking companies as part of their lease agreement.
How much does Occupational Accident Insurance for Truckers cost?
The cost of OAI will vary, based on several factors, including the insurance carrier, type of trucking and goods hauled, the number of truckers, type and age of vehicles and safety equipment, driving records, and your accident claims history. Your policy deductible, amount of coverage, and policy limits will also impact premium costs.
The biggest factors insurers will consider are the risks your policy will cover and how much it will pay out for accident-related expenses. The greater the risks and higher the payouts, the more your premium will cost.
Occupational accident policy premiums for truckers with limits between $500,000 and $1 million can range between $125 and $250 per month per operator.
Why Owner Operators Need Occupational Accident Insurance
Truck drivers are at a greater risk of work-related accidents and injuries than workers in most other industries. However, non-employee drivers don’t have to be covered by workers’ compensation insurance in most states nor have health benefits. OAI could lessen the owner operators financial burden.
OAI is a good option for trucking companies. It helps attract independent drivers who would otherwise be concerned about working for them because they have no protection if they’re in an accident and become injured while working for the motor carrier. While it’s not full workers’ comp, it is a reasonable form of accidental injury protection.
Added benefit of OAI: OAI also provides a limited level of protection to employers if an independent driver who becomes injured claims to be an employee who is eligible for workers’ compensation benefits. Plus, having the coverage reduces the possibility an independent trucker will sue you over accident-related injuries.
How to Get Occupational Accident Insurance
We’re ready to help you secure OAI for your business. Contact American Truck Insurance today for more information or a quote.