Workers comp.

Many trucking companies customers want O/O to have workers comp so you don't sue them if they run over you with a forklift or something. I have my workers comp through the state, costs $1.44/hr.Most trucking companies will try and get you to buy workers comp through them which is a scam.

 

Some companies/shippers/recievers require you to have workers comp. Some states don't require it Here's a list for you to check out. Workers Comp laws by state.
Most of the time your insurance company can get you the best prices. It's not cheap. Here in AL it's based on a percentage of the Gross Payroll and that can get pricey. There are what is called here in AL accidental injury insurance. It's a lot cheaper than W/C and covers you on or off the truck. One of our drivers added it on top of his other insurance and it was $135.00 per month. I'll try to find the underwriter's information and post it.

 

My rate through the state is $1.48/hr. I report the hours I worked and send a cheque every quarter.

 

Here in CA I got a quote for W/C for $817 a month which seems way to much considering that was just for one employee who likely will not ever make a claim considering he had WC with previous company for 14 yrs and never made a claim. At $817 a month after 5 yrs that would be over $40,000 that could put to better use either buying another truck and or having a group health insurance policy at about 30% of the cost of WC which would only be of use if employee gets injured on the job and do nothing for me of I am injured unlike health insurance that can be used by both. If I opt to lease the truck to the driver and claim him as a subcontractor to avoid WC the truck would need to be registered in his name and he would have to have his own CA # and insurance according to WC broker I spoke with. Is this true ? Are there any other alternatives here in CA such as filing for LLC and both of us signing form as partners perhaps ?

 

It may not be insurance they are wanting. Oklahoma has a W/C exemption form that you file with the State because you are self employed. I had to do this with previous carriers that I was leased to so they would have something in their files in case of a W/C audit. The broker I haul for know had me give them a copy showing I was exempt and wouldn't hold them liable in case of injury. Everyone is covering their butts.

If a company is requiring workers comp insurance for a owner operator they can go fly a kite, they are not worth leasing to. It is expensive and is not worth a crap if you try and file a claim. If they require Occupational Accident Insurance that is okay and will pay in case of a claim and is affordable.

 

You can get Occupational Accident Insurance threw OOIDA for around $140 a month. I had a owner operator friend fall while untarping his load and broke his wrist. They paid him $500 a week while he was off up until he was released from the doctor to go back to work. Not for sure what they paid on his doctor bills. You have to watch what coverage you get because some only cover you when you are on the job and away from home.

You can also go to the insurance agent you have for your auto's and home and get disability/accident insurance for a lot cheaper then I mention above. This is what I have done and it has great coverage and covers me 24/7 anywhere.

 

WA state rate is 3.31/hr.
Any suggestion to reduce L&I rate? move?