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The trucking industry plays a vital role in in the U.S. economy. In 2025, trucks carried 11.27 billion tons of freight. That’s 72% of the nation’s cargo.3 There are over 3.58 million employed truck drivers in the United States, but 8.4 million people who are employed in jobs related to trucking activity.1 When a driver suffers an injury on the job, they may have to take time off the road. That can impact shippers, customers, the trucking company, and most significantly, the truck driver. Occupational accident insurance can help mitigate the financial blow. Often overlooked, occupational accident insurance should be a key component of any trucking company’s risk management program.

WHAT IS OCCUPATIONAL ACCIDENT COVERAGE?

While independent owner-operators or contract drivers work under a trucking company’s authority, they’re not considered company employees and typically aren’t covered by workers’ compensation in the event of a work-related injury. While it doesn’t entirely fill the void of workers’ compensation, occupational accident coverage typically provides medical, disability, survivor, and death or dismemberment coverage for truck owner-operators leased onto a motor carrier if they’re injured on the job. Some policies also offer additional benefits for specific conditions or occupational diseases tied directly to trucking, and larger fleets may have the option of including vocational retraining coverage designed to help disabled drivers return to the workforce in a different capacity. The coverage can be purchased by the owner-operator or by the motor carrier, and while occupational accident insurance isn’t statutorily required by the state like workers’ compensation, trucking companies can require contract drivers or owner-operators to obtain the coverage as part of their lease agreement.

WHY IS OCCUPATIONAL ACCIDENT COVERAGE IMPORTANT?

The need for occupational accident coverage is highlighted by the fact that truck drivers operate in one of the most dangerous sectors for workplace accidents. In 2024, the U.S. recorded 5,070 fatal workplace injuries, representing a 4% decrease from 2023. Despite the overall decline, transportation incidents remained the leading cause of occupational fatalities, accounting for 38.2% of all workplace deaths.² Such statistics highlight how important it is to do everything possible to protect the owner-operators and contract drivers currently on the roads.

Unfortunately, many retail agents overlook occupational accident insurance or fail to cross-sell it to trucking clients because they don’t fully understand it beyond the fact that it’s not required by law. However, agents should take the initiative to explore the coverage because it protects both owner-operators and trucking companies financially. Without it, owner-operators often lack a financial safety net needed to help them recover and return to work after a workplace illness or injury. It also means companies run the risk of being drawn into a long, expensive legal battle if an owner-operator sues for workers’ compensation coverage. The cost and expertise required to defend such a claim can put trucking company assets in serious jeopardy. Contingent Liability is a separate line that provides an additional layer of protection if a motor-carrier does end up in the courtroom. The coverage provides legal defense reimbursement benefits and should the driver ultimately be deemed an employee; contingent liability provides benefits equal to those payable under workers’ compensation or an employers’ liability policy.

OCCUPATIONAL ACCIDENT INSURANCE MARKET

Pricing remains stable across the marketplace because occupational accident coverage has been a consistently profitable line. For both fleets and individuals, the majority of policies include a $1M limit with annual deductibles from $0 to $1,000. Most policies limit death and dismemberment benefits to $250K and disability provisions usually cover 60-70% of a driver’s basic earnings, depending on the specific risk. Various sub-limits within policies may vary. In addition, the renewal process is simple, and client retention rates with most carriers remains high.

When applying for coverage, agents should collaborate with insureds to create a detailed submission that provides all needed information up front. Underwriting is typically looking to insure established companies that have been in business for at least three years and maintain solid safety programs. Preferred accounts include drivers with at least two years of CDL experience driving large trucks. Depending on the type of operation, (auto hauler, refrigerated van, flatbed, etc.), underwriters typically want to see that drivers have experience in those specific commodities. Submissions should also include a minimum of three years of loss history and a detailed driver schedule including state of domicile and years/range of experience for each driver. Information about equipment maintenance processes, hours-of-service enforcement, and safety violation history is also important in determining the appropriate rate and coverages for each account.

BOTTOM LINE

Agents that don’t consider occupational accident coverage may be doing clients a disservice because it can play a key role in protecting trucking companies financially. Without it, companies run the risk of being drawn into a long, expensive legal battle, ultimately putting their business assets at risk. Working to create a program including occupational accident, workers’ compensation, and contingent liability coverages rounds out the insured’s risk management program, simplifies the process, and makes it easier for underwriting to quantify the full range of exposure.

Over the last year, requests for occupational accident coverage have grown, and further expansion in owner-operator coverages is expected as carriers seek to significantly expand their lines. 5Star writes all forms of trucking coverage, maintains strong partnerships with growth-minded carriers, and has the experience you need to meet the needs of your trucking client.