Why the need for Worker's Comp Insurance

[kblickster]

OK - I think I located the information about WC insurance requirements...

http://www.comp.state.nc.us/ncic/pages/truckers.htm

Look forward to your interpretations.

[LOAD IT]

Why do some companies require a one truck/one driver operation to have worker's comp insurance?

I know that I can buy a ghost policy for 800.00 and cover myself - but what is the point? I know it's worthless and can't stand the thought of wasting my hard earned money on it.

If you are leasing to a reputable company and will drive the truck yourself, they will require Work Comp. If you put a driver in the truck, they require you to get OCC/ACC coverage for your driver.

This is the law in New Hampshire. Unless you are a sub contractor working for a general contractor which your not you don't need it.


Under the New Hampshire Workers' Compensation Law RSA 281-A every employer who has any employees, full or part-time, is required to cover these employees with workers' compensation insurance written by a carrier. It does not matter if they are related, such as daughter, son, husband, etc. It also does not matter if the business is a "Non-Profit" organization.

Sole-proprietors, partners and self-employed persons are not required by law to carry workers' compensation on themselves but may elect to be covered, per RSA 281-A:3. Sole proprietors or partners operating as Sub-Contractors, even those without employees, may be required by a General Contractor to carry workers' compensation coverage as part of their private agreement. If they have coverage at all, a corporation or LLC may elect to exclude up to 3 executive officers, under RSA 281-A

[pepe4158]

Pepe..you live in Califonia correct?? The state of CA requires you to carry Workman's Comp on yourself.. I do believe.

In CA you sign a waiver and not have it if you're a one man operation. If you have any employees then you have to have it.[/quote]

Hmmm always thought thats ONLY if you incorporate or have employees....the poster is brand new to his own authority....so hows he have employees n why the hell would he Inc?
I asked G-man some time ago why would a one man pony show like me incorporate.....what good is it...n couldnt see any value in it?

[pepe4158]

OK - I think I located the information about WC insurance requirements...

http://www.comp.state.nc.us/ncic/pages/truckers.htm

Look forward to your interpretations.

K////have you signed up with OOIDA?....if not I strongly suggest you do...its really cheap and they have been extremly helpfull and knowledgable to me.
This is a question I would call them about if just you (no Inc)....just running own authority, need a WC policy? (they would know for sure).....be news to me if I needed one here in Cal.......Id tell em screw you n move all my funds immediatly out of state if they ever gave me a hassle.
Yeah lots of guys here in Ca hire people to work DONT here....n are busted for it on a routine basis (picking up day laborers)...we have a HUGE illegally here underground workforce (that the latin caucus here loves to be here). So they talk out of two ends of their mouths n only enforrce it when a worker complains.
So even if they required just me, theyd never get around to just me not covering myself :-p

[kblickster]

Pepe - Not sure why they are asking me for Worker's Comp. My insurance agent told me I didn't have to have it. In a previous post - I posted an interpretation of the NC law which I read to mean that I don't have to have it. The only thing I can think is this company doesn't know the law in NC or is extremely afraid of litigation.

Thanks for the suggestion of contacting OOIDA. I will do so tomorrow.

As for the company wanting the WC insurance. Will just not haul for them. Just wanted to make sure I hadn't missed something in my setup.

[GMAN]

My state doesn't require workers comp unless you have at least 5 employees. Each state has different laws concerning workers comp. A carrier can make their own rules. If you are leasing to a carrier you may want to check to see if you can get an occupational policy instead. They are really only trying to protect themselves from a claim.

[ncnewbie]

As I read the NC statutes, WC is required if you have a subcontract with a motor carrier (like an o/o lease). It's pretty clear "ghost" and “accidental occupational injury" policies are not acceptable.

If you look at example 8, if you contract directly with the manufacturer (shipper) you wouldn't need WC.

Here's a link to the NC Assigned Risk pool calculator to determine what NC will charge you for WC:

https://www.ncrb.org/ManageAR/StandA...?type=ez_quote
Code for long haul trucking is 7229. I think it's 15% of taxable income the first year.

As GMAN points out, the carrier can require whatever they want in order to work for them as long as it's not legally prohibited (discrimination etc). Even then they might until "called out" on it. If you're looking to lease with a carrier, ask if you can be included on their WC policy. It's usually cheaper. Carriers know they're on the hook if you get hurt and don't have WC while leased to them. BOL.

[GMAN]

I was told that North Carolina is the only state in the country that requires workers comp with only one employee. There was a driver that I was going to hire about a year or so ago. I decided against it because I would have had to go to the higher expense of workers comp rather than being able to have the occupational policy. It is my understanding that you don't have to be headquartered in North Carolina for them to force you to carry workers comp. I heard something the other day about New York. According to what I was told that New York now wants any carrier who either picks up or delivers in that state to have workers comp in New York. I was told that they want you to carry it for their state even if you carry it in your home state. :?

[ncnewbie]

And leasing to a motor carrier is the only exception to NC's rule that 3 or less employees don't need WC. Also, say your a motor carrier with HQ in TN and lease an O/O under your authority. He's licensed in GA. The O/O gets hurt while under load for you in NC. NC says the driver's entitled to WC and if he doesn't have his own policy then the carrier is liable.