Overdrive Magazine | Trucking Business News & Owner Operator Info
Issue link: http://read.dmtmag.com/i/93143
OCC/ACC SAMPLE POLICIES In addition to insurance carriers like Great American and TrueNorth, other entities offer occ/acc policies. Some are truck- ing organizations, such as Truckers Service Association, Truckers Benefit Association and the Owner-Operator Independent Drivers Association. They offer group policies with various plans, options and riders. For example, OOIDA has three occ/ acc plans: • $2 million worth of occ/acc cov- Some disability insurances may require you to get a medical exam before a policy is issued. percent. Most policies will stay in effect as long as you stay current on your pre- miums, even if chronic health problems continue after your initial claim. "In some cases, an owner-operator's spouse may have a family medical plan through an employer," Ford says. "Work-related injuries for the owner- operator, however, may be declined by the plan provider because most work- related injuries typically are covered by a workers' compensation policy or an alternative product," such as an occu- pational accident policy. Occ/acc and disability policies, and in certain circumstances Social Security, are the most common income replace- ments available to owner-operators. Occupational accident The most common coverage for owner- operators is an occ/acc policy. It pro- vides benefits to the policyholder in the case of a work-related injury or illness, unlike a traditional accident policy that pays out even if the accident is not work-related. Occ/acc benefits are not based on income, but rather a menu that outlines the payment amounts for minor to major job-related injuries or illnesses. Some carry options or riders depending on what the policyholder wants. "Trucking puts a lot of strain on owner-operators with the cost of equip- ment and fuel," says Carl Della Vella, chief executive officer of Association Benefits of America, an insurance broker in Scottsdale, Ariz. "Most owner-operators don't even think about workers' comp or occupational-accident until they need it to get a job." Most fleets require leased owner- operators to obtain either workers' comp or occ/acc coverage, and occ/acc is the most common income replace- ment insurance. For this reason, many owner-operators don't view occ/acc as elective coverage. One thing that makes occ/acc the top choice is it's usually cheaper than work- ers' comp. Also, in most states, workers' comp won't pay out to self-employed workers. This makes occ/acc an easy choice if your state's workers' comp regulations have an opt-out provision. "Owner-operators who are just start- ing out usually want to know what the bare minimum is they need to get on erage for $162.85 a month. It pays 70 percent of weekly income with a maximum of $700 per week for up to 104 weeks for temporary total dis- ability and up to age 70 for continu- ous total disability. It has a seven-day waiting period. • A $1 million policy that has the same weekly benefit limits and payout duration for $144.40 a month. • A $500,000 policy, with the same duration limits, for $130.50 a month. It pays $500 per week for temporary and continuous disability. Association Benefits of America offers two occ/acc plans: • A $1 million accident medical policy for $144 a month that offers both temporary total disability (104 weeks) and continuous total dis- ability (to age 65). This plan has a seven-day waiting period and will pay 70 percent of income up to $450 a week. • A $500,000 policy for $113 a month with a 14-day waiting period. Its temporary disability runs out in 52 weeks, and the continuous coverage caps at five years. the road," says Peter Berg, an account manager with TrueNorth Companies, December 2012 | Overdrive | 19