Workermens Compensation is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee's right to sue his or her employer for the tort of negligence.
When a trucking company sponsors an Occupational Accident Program, Contingent Liability Coverage is then available to protect the motor carrier in the event that an injured Owner Operator seeks employee status. Depending on the insurance company used, the Contingent Liability policy will either pay Workers Compensation benefits on behalf of the motor carrier, or it will reimburse the motor carrier for any related expenses – which are not covered by any other insurance – that are paid to an Owner Operator, who is successful in being deemed an employee of the motor carrier.
This insurance will be presented to drivers and fleet owners as medical and disability insurance coverage for the driver and sometimes this is the case. (See Ontariovanman's above post.) If you already have health and disability you are being forced to buy double coverage as was the case with Ontariovanman's medical insurance. If you are over 65, chances are you have a social security check, medicare and a medicare suplement. Also, medicare will not pay anything if they know a Workmans Comp claim is involved. (This info was obtained from the medicare 800 number so I won't swear to the accuracy.) Again, double coverage. You also relinquish any monetary claim due to negligence.
What is the real reason this insurance is forced on drivers and/or fleet owners? It forces the driver and/or fleet owner to pay the premiums for insurance covering possible neglegence by the carriers customers and it covers the carrier should the driver prove employee status at the time of a accident. Why should drivers and/or fleet owners bear this expense. Especially if they already have insurance covering themselves.
So, if you fall through a shippers 110 year old dock, break your leg, get the plague from being bitten by the rats living underneath it, and miss 6 months of work, do you think this insurance will cover all your monetary losses? I doubt it. You'll probably have to fight for every penny you get, and may not get anything if the dock owner says you were overweight and clumsy.
