Worker Comp. in Michigan

[KeepRollin]

I have a tractor leased on with a small company in Michigan, my driver is a sub-contractor and has an occupational accident policy. I was told he needs to get a workers compensation policy. Does anyone kwow where he can get a policy? How much do these policies normally cost?

Thanks,
Todd

 

[greg334]

someone correct me if I am wrong but occupational accident policy is the same as workmans comp.

 

[KeepRollin]

Greg,
That's what I thought too, I have a couple of straight trucks and thats all that was needed for them.

Todd

 

[greg334]

The best thing to do is call the insurance agent who is insuring your contractor to either verify it or to see what you need.

 

[DannyD]

Hi Todd,

Like Greg I thought they were the same thing. Since apparently they're not I'll tell ya what I can. My best guess on where to get one of these policies would be thru your homeowners insurance rep. My understanding is you can get your best rates thru whoever your own agent is.

The other place to inquire thru is the company you're signed on w/. They might have volume discounts w/ their agent. Those are the two best suggestions I can give ya.

On the price of em. Yipes!! IMO it's a complete rip-off. My policy costs $170/month. I'd have to get hurt every 2-3 years & be laid up quite awhile to have this thing pay for itself. I've kinda wrote it off as a cost of doing business but that doesn't change that I think Workmans Crock is the product of an insurance company paying off a politician.

Finally, if ya do find it for less somewhere please come back & let us know.

Best of wishes to ya,
Danny

 

[highway star]

I'm with a Mich based company and live in Mich. Occupational accident is acceptable coverage.

 

[JohnMueller]

Keeprollin:

Occupational Accidental Insurance is NOT Worker's Comp. Occ-Acc is an insurance policy that covers the same things as Worker's Comp, at or above the same levels of Worker's Comp for a fixed cost per month. No one should be telling you it is WC.

Here in Ohio, a monopolistic state, WC can only be obtained through the state fund. The cost for WC for a "long distance" trucker is 8.2%. For a local "P&D" driver it is over 16%. In other words, for every $100 you pay yourself (based, and registered with WC in Ohio) you would owe Ohio WC $8.20 (as a long distance driver). An Occ-Acc policy is at a fixed rate - most reasonable Occ-Acc average about $150 per month. Occ-Acc policies are a great alternative to WC.

Fleet owners should be careful if paying for any sub-contracted driver's Occ-Acc. Reason being, it can distort the relationship to any employer-employee status as opposed to a Contractor to Subcontractor relationship. I heard the thing to do is "pay" the sub for the insurance premium, with the sub paying the actual invoice for the Occ-Acc premium. Subs may still come back on you, if injured, and claim to be an "employee". Be sure to have a well written agreement with your subs as to who is responsible for what.

Shop around for various prices on Occ-Acc. Compare the prices and coverages to WC. There are many policies available from many insurance companies, though I would suggest obtaining even Occ-Acc through an insurance company that deals specifically with trucking insurance, such as the companies that sponsor banners here on Expediters Online.

I hope this clarifies WC vs. Occ-Acc for you.

Thanks,
HotFr8Recruiter