California Workers’ Compensation Coverage for Trucking Companies
Workplace liability insurance provides crucial protections to all types of businesses in California, especially those in high-risk industries like trucking companies.
To begin, if you own a trucking company in California, you will most likely need to purchase a Workers’ Compensation insurance policy. This is because California requires all companies with any number of employees to have insurance. Trucking companies often hire independent contractors who are ineligible for Workers’ Compensation benefits. Still, any other regular employee must be covered by a plan. Having Workers’ Compensation for a trucking company is a positive thing, especially when considering the high rate of workplace accidents in the industry. Truck drivers might be hurt when loading and unloading products or if involved in auto accidents. There are affordable alternatives to traditional Workers’ Compensation plans that might be ideal for trucking companies in California, such as pay-as-you-go workplace liability insurance.
To get a policy that covers your trucking company and employees from NPN Brokers, call our California Workers’ Compensation insurance brokers at (866) 340-9120.
Workers’ Compensation Coverage for Trucking Companies with Independent Contractors in California
All companies in California, regardless of industry, must maintain Workers’ Compensation coverage for all regular or part-time employees. But what about independent contractors, which are commonly employed by trucking companies? Do they also need to be covered by Workers’ Compensation in California?
Trucking companies tend to hire employees as independent contractors. Because they are not regular trucking company employees, they are ineligible for Workers’ Compensation benefits. This means you do not legally need to purchase a Workers’ Compensation policy if you only employ drivers who are independent contractor.
That said, even trucking companies with independent contractors likely have regular employees who carry out other responsibilities, such as administrative work. If you employ even one regular worker in California, you will need to get Workers’ Compensation. And, if truck drivers are not independent contractors, they will need to be covered by your policy. Misclassifying truck drivers as independent contractors when getting Workers’ Compensation is may be considered fraud and is typically punishable by fines.
Common Workplace Injuries Among Employees of California Trucking Companies
Truck drivers have hard jobs. Not only do they have to transport goods and products across far distances, but they often have to load and unload products from their vehicles. And, because they are on the road for so long, truck drivers have a higher chance of being injured in a motor vehicle accident in California.
Overexertion is common among truck drivers. They might sustain back, shoulder, and neck sprains when loading and unloading goods from their vehicles. They might also experience back injuries because they are constantly in a seated position, driving a truck for long periods of time.
Truck drivers might also be injured in auto accidents. These accidents do not always involve passenger cars, but they might. Because of their massive size, trucks might be more likely to lose control on slick roads. Trucks also have big blind spots, making it harder for drivers to gauge the distance between them and cars in other lanes.
Drivers who operate their vehicles for too long without breaks might drive while fatigued, resulting in an accident. Although truck drivers are often protected by their vehicles, severe auto accidents can and do happen, resulting in life-altering injuries. When employers have Workers’ Compensation plans, their employees can easily file claims to get their damages covered in California.
Pay-as-You-Go Workers’ Compensation Coverage for California Trucking Companies
Some trucking companies have a high turnover rate of drivers. Others are dictated by the time of year and demand. If your company has regular lulls in its payroll, consider getting pay-as-you-go coverage from our Workers’ Compensation insurance brokers.
Pay-as-you-go Workers’ Compensation has many benefits for trucking companies. This type of coverage works by taking a company’s monthly payroll numbers and calculating real-time premiums that are as accurate as possible. Traditional Workers’ Compensation plans are calculated using annual payroll estimates. This results in a less accurate overall cost for companies with high employee turnover rates.
With pay-as-you-go insurance, a trucking company’s Workers’ Compensation premiums will change as its workforce does. This can allow employers to save on Workers’ Compensation costs, which is especially advantageous if a trucking company is considered a risk to insure.
Cost of Workers’ Compensation Coverage for California Trucking Companies
Because of the prevalence of injuries among truck drivers in California, Workers’ Compensation carriers are often hesitant to offer coverage to trucking companies for an affordable price. By contacting the right insurance providers and increasing workplace safety, you can get affordable Workers’ Compensation for your company.
Driving a truck is a high-risk profession. Because of that, having Workers’ Compensation is especially important for trucking companies. But what about the cost of insurance? To estimate the cost of your company’s premiums, evaluate its payroll, history of claims, and age. High payrolls generally lead to higher Workers’ Compensation premiums. And the riskier the industry, the more expensive the premiums. These are general guidelines trucking companies can use to estimate the cost of their Workers’ Compensation policies.
Despite being high-risk, there are ways for trucking companies to lower their insurance premiums. When hiring drivers, ensure they are licensed and capable. Get referrals from previous employers and properly train your drivers. Employers should not incentivize driving long hours or into the night, as this can increase the chance of an auto accident occurring. By keeping the number of filed Workers’ Compensation claims low, you can also lower the cost of your Workers’ Compensation insurance in California. To lower the cost even further, employers can ensure that initial premiums are not too expensive based on a trucking company’s risk factors.
Call NPN Brokers to Secure a Workers’ Comp Policy in California
You can call our Workers’ Compensation insurance brokers at (866) 340-9120 to get a quote from NPN Brokers.
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