Page 33 - Webinar workbook

7. Workers’ Compensation Insurance

• Workers’ compensation insurance is a state-mandated coverage that pays employees’
medical costs and lost wages if there are work-related illnesses or injuries. Typically,
only motor carriers and owner operators with employees have to get workers’
compensation, but some states may require coverage for business owners in high-risk

industries.

Depending on state law, injuries covered by workers’ compensation typically include:

• Traumatic injuries after a truck accident
• Repetitive stress injuries from loading and unloading cargo
• Work-related illnesses from exposure to harmful chemicals

Which policies you need mainly depends on your status as an owner-operator. Owner-

operators working under their own authority generally need all of these semi-truck insurance
policies. Truck drivers working under a lease need to look at their contracts to determine what
coverage they need.

Tips for Lower Insurance:

1. Keep Your Record Clean

Your driving record is a major factor in determining your truck insurance cost, so it’s
important to always follow best practices on the road. For example, follow the speed

limit, don’t use your phone, and maintain a proper stopping distance.

2. Consider Restricting Your Radius

New ventures often struggle to afford truck insurance because they represent a higher
risk to insurance companies. This can cause new owner-operators to rely on risk
retention groups, or RRGs. RRGs often offer assessable policies that can lead to surprise

expenses at the end of your policy term.

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