Contingent Liability Ins.
Contingent Liability insurance is designed to shield you in the event that an independent delivery driver who is covered by Occupational Accident insurance nevertheless makes a workers compensation claim against your company, and in so doing exposes you to a ruinous IC audit on your WC policy.
You might think that drivers with Occupational Accident insurance coverage have no good reason to make a workers compensation claim against you, their contracting carrier. We wouldn’t argue – but what if one does?
Some drivers don’t understand that they already have purchased similar benefits. Others may be led into thinking they can ‘double-dip’, though in fact they could wind up losing their Occ.Acc. benefits if they try. Regardless, these claims do happen.
Your WC insurer would normally have to respond to such a claim. It would pay out substantial sums to either defend you or cover the claim. Either way, the result could well trigger the audit you hoped to avoid.
The Association’s insurance partners have designed a low-cost policy to protect against precisely this kind of “contingency”. Contingent Liability insurance steps in to take on the cost of defence and, if necessary, statutory WC benefits. All this so your WC insurer doesn’t have to get drawn in.
Contingent Liability insurance is affordable and easy to apply for. It is available to most A4DD contracting carriers with ten or more independent delivery drivers. Click here to apply for a quote today.
Note: obtaining this protection from the same insurance company that handles drivers’ occupational accident insurance and your workers compensation maximizes audit security for you. A4DD’s insurance partners can arrange this kind of coordinated coverage for many of our contracting carriers, so be sure to inquire.