Home > Forums > Market Requests

Request 4 Bus owner to carry W/C 4 himself

  • Posts: 15
    Posted on 01/20/2009
    optistarcorona
    We have clients that have a condition within a contract that requires GL AND Worker's Comp coverage. Our clients are a ma and pa operation, no other employee other then the owner, here in California, a business owner is not required to carry Workers Comp for himself and there will be many contracts that are lost when the business owner tells his client that he is not required to carry this coverage and then the client that is offering the job ends up going with a firm that does have W/C. I would like to know what type of coverage other then a W/C policy, a business owner can obtain in order to provide satisfaction of this condition in a contract.
  • Posts: 13
    Posted on 01/20/2009
    wlunday
    There are a whole bunch of unanswered questions here, but in a nutshell here's what I do for clients in this pickle...

    As you know, Worker's Compensation Insurance is an "Employer Liability" contract. Many "owners" attempt to replace this with a quality insurance portfolio that includes Disability Income Insurance, Life Insurance, and a Medical Policy. These would all cover him / her 24/7.

    But, it's NOT worker's comp. These plans typically don't have the rights and full benefits found in WC programs, and if your client ever needs to re-open a claim he'd better still have the coverage in force. You get the drift.

    However these plan designs are better than nothing, and in many instances are superior to worker's comp at claim time. One catch is that the insured will have to be healthy enough to qualify. Another is that the employment contract they enter into would have to allow it. This might be easy enough to negotiate. Good Luck.

    Swymmer
  • Posts: 19
    Posted on 01/20/2009
    sfa
    You may want to look for an occupational accident policy for this person. Occupational accident is a health policy that provides medical, disability and AD&D benefits to covered individuals. It is often referred to as a comp look-alike and is very popular in the transportation industry - especially truck drivers.

    The premium is payed on a flat basis per month, so it is convenient for these types of exposures. Most carriers who offer this coverage require a minimum of 10 lives to issue a policy, but I believe there is a company that can issue single driver policies. Try Associated Underwriters in Plymouth Meeting, PA. They may be able to help you - they have a program for this coverage. Their number is 888-882-7939.

    Good Luck!
  • Posts: 15
    Posted on 01/20/2009
    optistarcorona
    Thank you! You guys/gals are great! You gave me options and then the pros and cons to both sides which allows me to understand and thereby providing my clients with a better understanding as to why whatever advice given is done with a clear understanding of present and future events. Thank you, you are great and I appreciate the time that you all took to write.
<< previous next >>
Reply