We have actual workers compensation policies for your 1099 drivers.
Let’s go over the reasons why that is such a big deal:
• It removes the opportunity for your insurance company to add them to the motor carrier’s policy at audit time.
• Unlike Occupational Accident our workers comp policy is truly a sole remedy workers compensation policy so the
coverage is much richer.
• Because it is written in the drivers name it helps to further prove that he or she is truly an independent contractor.
• Our policy is a flat monthly rate with no audits.
In the past in order to get such great coverage you actually had to add the drivers to your W-2 payroll. The problem with that was you also had to start paying FICA, FUTA, and SUTA taxes which adds about 9% to your costs.
Also, the typical workers comp costs can run anywhere from 10% to 14 % of actual audited payroll. So overall the costs of providing true workers compensation coverage would run you around 19% to 23% of the drivers actual pay versus our flat rate per state.
We are located in Macomb County, Michigan but insure 1099 drivers, all throughout the continental USA.
Give us a call at 586-726-7800 and ask for Chris.