Class Insurance Agency, an affiliated office of AIC Insurance
Occupational accident coverage for owner-operators
If you’re an independent owner-operator, the carrier’s workers’ comp usually doesn’t cover you. Occupational accident insurance pays medical bills, lost income and death benefits if you’re hurt on the job, and many carriers require it before they’ll lease your truck.
Call 360-450-2211 or start a quote online. We work in English, Russian, Ukrainian and Romanian.
What occupational accident insurance is
It was created as a way to provide benefits similar to workers’ compensation for people who don’t have it.[1] New York’s insurance regulator treats these policies as accident and health insurance, and has noted that independent contractors wouldn’t be covered by workers’ compensation.[2]
A typical policy includes accident medical, disability income and accidental death benefits. For example, OOIDA’s program offers medical limits of $500,000, $1 million or $2 million, and temporary disability of $500 to $700 a week for up to 104 weeks after a 7-day wait, with death benefits of $200,000 to $300,000.[3] Benefits and prices vary by program.
How it differs from workers’ compensation
| Workers’ compensation | Occupational accident | |
|---|---|---|
| Who sets the benefits | State law, no-fault[4] | The policy, with set limits[3] |
| What it covers | Work accidents and occupational disease[4] | Work accidents; illness coverage varies by policy |
| Right to sue the employer | Generally barred (exclusive remedy)[5] | Not a workers’ comp substitute under state law[3] |
| Who runs it | State workers’ comp systems[6] | Private insurers |
Why carriers require it
Leased owner-operators are usually outside the carrier’s workers’ compensation, so carriers want injury benefits in place. Landstar, for example, requires occupational accident coverage, or in some cases statutory workers’ comp, from its leased owner-operators.[7] The premium is often charged back through your lease, and federal rules require every chargeback to be itemized there.[8]
State rules that change the picture
- Washington. An owner-operator driving a truck they own and lease to a carrier isn’t a “worker” for state workers’ comp.[9] A Washington-based owner-operator can elect coverage, whether or not the truck is leased.[10] Contractors must own and operate their truck, or meet Labor and Industries’ lease-purchase criteria, to pass its “personal labor” test.[11]
- California. Under AB5’s ABC test, anyone who counts as an employee is covered by workers’ comp.[12][13] The Ninth Circuit held in 2021 that federal trucking law doesn’t block AB5 for motor carriers, and the Supreme Court declined to review it in 2022.[14][15] Leased owner-operators have trouble with prong B of the test because they work in the same business as the carrier, so many run under their own authority instead.[16]
What to have ready for a quote
- The carrier you’re leased to and its occupational accident requirements
- The benefits you want: medical limit, weekly disability amount, waiting period and death benefit
- Your state of residence and the states you run in
- Whether anyone besides you drives the truck
Frequently asked questions
Is occupational accident insurance the same as workers’ compensation?
No. Workers’ comp pays state-set, no-fault benefits and covers occupational disease. Occupational accident pays the limits in the policy and isn’t a workers’ comp substitute.[4][3]
Can my carrier deduct the occupational accident premium from my settlement?
Yes, if the lease itemizes the chargeback.[8]
I’m a Washington owner-operator leased to a carrier. Am I covered by L&I?
Generally not; owner-operators driving their own leased trucks aren’t “workers” under Washington law. You can elect coverage, though.[9][10]
Does California’s AB5 affect owner-operators?
If you’re leased to a carrier in California and count as an employee under the ABC test, workers’ comp rules apply. Many owner-operators run under their own authority instead.[13][16]
What limits should I choose?
Compare the medical limit, weekly disability benefit, waiting period and death benefit with your carrier’s minimum and your own savings.[3]
Get an occupational accident quote
Call 360-450-2211 or start your quote. We quote trucking operations in the 48 contiguous states from our office in Vancouver, Washington, Monday to Friday, 7 a.m. to 5 p.m. Pacific.
Related coverage
Sources
- [1] IRMI: Occupational accident insurance
- [2] New York DFS: Occupational accident coverage for independent contractor drivers
- [3] OOIDA: Occupational accident program
- [4] IRMI: Workers compensation
- [5] IRMI: Exclusive remedy
- [6] U.S. Department of Labor: Workers' compensation
- [7] Landstar: Owner-operator FAQs
- [8] 49 CFR 376.12: lease requirements (chargebacks)
- [9] RCW 51.08.180: definition of worker
- [10] RCW 51.12.095: optional coverage for owner-operators
- [11] Washington L&I: Trucking insurance requirements
- [12] California Labor & Workforce Development: ABC test
- [13] California Labor Code § 3351
- [14] Ninth Circuit: California Trucking Association v. Bonta (2021)
- [15] U.S. Supreme Court docket 21-194 (review denied 2022)
- [16] J.J. Keller: AB5 and the leased contractor model
General information only, checked September 2026. Rules change; confirm with the agency that issues your permits. Coverage availability, terms and filings depend on underwriting and the policy issued; a quote request does not bind insurance.