If you are in the transportation industry, more specifically if you use independent contract drivers and are concerned about employee reclassification actions, we have several creative risk transfer solutions available.
It is critical that Owner/Operators who are working for you as Independent Contractors not be deemed to be acting as employees. If they are, your company and your balance sheet are at risk.
Why would an independent contractor seek employee status?
The motivation to seek employee status can be any of a number of things.
For Example:
· If an owner /operator is involved in a serious accident and requires compensation greater than he can be awarded by Occupational Accident and Contingent Liability insurance, he will often seek to be considered an employee by the Workers' Compensation board and gain access to the Motor Carrier's Workers' Compensation policy.
· If a Motor Carrier has purchased Workers' Compensation for owner/operators and is back-charging the premium to the drivers there are several problems with this model as can be noted in this New Jersey Case.
When the Workers' Compensation board, the courts, or any other legal entity recognize the independent owner/operator as an employee, they create a precedent that can be used to establish all other drivers in their role as employees.
This can be a nightmare for a Motor Carrier and lead to:
· Exposure of corporate Workers' Compensation policy
· Audit of their Workers' Compensation policy
· Federal regulation and fines for mis-classifying drivers
· Drivers demanding employee benefits like 401k, health benefits, etc (maybe retroactively)
· Federal requirement to pay Social Security, Medicare, etc (maybe retroactively)
This could lead to financial disaster for the Motor Carrier, and is something that you can help them avoid.
Our programs create a firewall between the Motor Carrier and Owner/Operator and better server the Owner Operator
Two Programs with the goal of isolating the motor carrier from the driver
· Stand Alone Program (One Firewall) - Our stand alone program provides Owner/Operators with Occupational Accident and Contingent Liability Insurance that is backed up by an "If Any" Workers' Compensation policy in the driver's name, all for about the same rate as traditional Occupational Accident and Contingent Liability alone. In the event of a serious accident, if the driver seeks Workers' Compensation coverage, and is deemed to be an employee by a Workers' Compensation board the "If Any" policy with the Alternate Employer Endorsement would pay the claim protecting the corporate Workers' Compensation policy.
· Complete Solution (Two Firewalls) - In addition to the insurance components described in the Stand Alone Program, this Complete Solution utilizes a Third Party Contract Administrator that would process the drivers 1099 settlement under their Federal ID number. The drivers can obtain additional optional benefits thru their membership in PAIC (Professional Association of Independent Contractors). This entire relationship can be easily established using our turn-key solution.
How can I learn about the program?
· Introductory Video - YOU'RE WATCHING IT)
· Slide Presentations - PowerPoint presentations that explain the urgency of proper risk management
(Slides - If you currently use Occ Acc and Contingent Liability http://kingfishins.com/pdfs/BerrierInsurance/OccAccAndContLibFor1099Berrier.pdf)
(Slides - If you have Workers' Compensation for the Independent Contract - http://kingfishins.com/pdfs/BerrierInsurance/workerscompFor1099Berrier.pdf)
· Active Marketing - Kingfish Insurance, our program sponsor, holds regular webinars to inform Motor Carriers of the risk of a simple owner operator agreement as their firewall to defend against employee reclassification and discusses the solutions available. Webinars include current examples of cases where reclassification is impacting other motor carriers.
(Recorded Webinar http://www.youtube.com/watch?v=trdBqB6xizU)
Contact Berrier Insurance today! (888) 472-4915 or info@BerrierInsurance.com
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Trucking Risk Management - Webinar #2by petekingfish229 views
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