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A Division of MTG Insurance

A Division of MTG Insurance

Occupational Accident and Contingent Liability

Mar 30, 2021 | Bobtail Insurance

Owner-operators are essential in the trucking business. Since they are temporary workers with you as the motor carrier, questions often come about as to how they fit in with your company’s workers’ compensation policy. Occupational accident and contingent liability insurance are two unique coverages designed to protect both a motor carrier and the owner-operators that are leased under them.

Occupational Accident Insurance

There are some individuals excluded from workers’ compensation benefits including those listed as independent owner-operators or contractors. Occupational accident insurance offers these individuals limited protection while on the job. It only covers owner-operators who suffer from an eligible, on the job accident while remaining under contract with the motor carrier. This alternative to individual workers’ compensation coverage is a less expensive, more readily available coverage for self-employed truckers.

Your policy will primarily cover:


Accidental death/dismemberment


Survivor’s benefits


Medical expense


Temporary or continuous disability


While vastly similar, it is important to understand that occupational accident insurance can never offer equivalent protection to a workers’ compensation policy.

Contingent Liability Insurance

After a work-related accident, some contracted owner-operators will attempt to claim they are a full-time employee and are entitled to full workers’ compensation benefits. If an owner-operator ends up being legally titled an employee, contingent liability insurance will cover the losses that can occur from their claim. Keeping in mind the terms of each individual policy, an owner-operator may be paid directly or the motor carrier may be reimbursed for costs that were not covered by other insurance policies.

Contingent liability insurance is easily available to employers who give their contracted owner-operators the option of an occupational accident insurance plan.

Determining how your workers’ compensation coverage is affected by your contracted employees is a difficult task. Occupational accident and contingent liability are designed to protect both motor carriers and owner-operators from the risks they face. Contact Bobtail Insurance Group to see which plan fits best with your individual needs! Call BIG at 1-833-4-RIG-INS to discuss your options.