Question
I am going to buy a truck Monday.July 19
the folks I am going to haul for says I need workmans comp insurance,allthough I am not covered and I don`t have any employees...Why would this be nessacery?
By law ,in North Carolina,do I have to do this?
thanks , Tommy
Answer
North Carolina has had some big changes in the Workers Compensation in recent years. The view of "independent contractors" has taken on a different meaning.
It is my understanding, that a motor carrier in North Carolina can contractually require a leased owner-operator to provide Workers Compensation and not Occupational Accident. The reason, as it has been explained to me, is because in North Carolina, the independent contractor is considered an employee under the motor carriers policy unless he provides the coverage in his own name and that coverage must provide benefits to the independent contractor and cannot be a "dummy" policy for the purposes of providing a certificate of insurance.
To get the most accurate information, contact the Workers Compensation Commission in North Carolina.
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Try this link:
http://www.dol.gov/cgi-bin/leave-dol.asp?exitur...strial_Commission
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thanks Connie,I`ll check it out
Answer
Sad as it may be, it is a necessary evil in this business. I'm required to carry work comp on myself here in KS. I'll never use it, so it's a wasted $2800 a year.
The kicker is this... every year the insurance company wants to do a review to make sure I don't have any employees. I just got a letter from an independent company that does the reviews (the same company that did it last year) that stated they will be out on the 10th (didn't bother to check if I'd be here or not) and they wanted to see my payroll records (don't have any), State unemployment records (don't have them either), and my 941 reports (nope, don't do them either)
I called the lady and told her I was a 1 truck operation and that was all I ever planned to be. I managed to make her happy by faxing a copy of my schedule C to prove I didn't employ anyone. (after she told me that they usually didn't do it that way.)
It's a PITA, but something we have to put up with to call ourselves independent, I guess.I like all dogs I meet, and some people too!!
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AMEN!
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I had a truck leased on to a company out of KC, KS and was only required to have an Occupation Health Policy on my driver, who was an employee. I was told this by the company, which sounded fishy to me, so I called the State of Kansas and got the same answer. So my question is: why have the Workers Comp when the Occupational Health Policy serves the same purpose for much less? W/C would have cost me $ 239 per month, but the O/H policy cost me $ 141. The policy had a $ 2,000,000 cap on it, but I told him that his wife and I had a talk and we decided if it ever gets close we'd bury him under the BIG maple tree in his yard. Luckily, we didn't have to go to these extreme measures.
All kidding aside, I have the O/C on myself, and I'm not required to have it here in Nebraska.
Answer
Technically, the employee driver should be covered by Workers Compensation. It's the law in most states. And NO!, Occupational Accident will not do the same thing. Occupational Accident has some limitations that Workers Comp doesn't. It was designed for the owner-operator that is not required to carry statutory Workers Compensation, but want's some type of work-related coverage at an affordable price.
While many truckers are "skirting" the Workers Comp with "contract labor leases" and getting away with it, IF the biggy happens an attorney will have a field day with the employer. And in all probability win.
A friend of mine is an attorney in Wisconsin and specializes in Workers Compensation lawsuits. He and I have had some great talks about the Occupational Accident vs. Workers Compensation. He just loves it when an employer has Occupational Accident on the driver instead of Workers Compensation. Because by the time he gets done winning his Workers Compensation decision, the state is looking for income tax withholding and unemployment tax.
While the law varies from state to state, before anyone utilizes Occupational Accident to meet their Workers Compensation responsibility, I recommend checking with the Department of Insurance in your state.