Traditionally, insurance has relied on information asymmetry: The insurance carrier has had the advantage of access to reams of actuarial data which it uses to price policies, while the customer has had the advantage of more intimate knowledge of his or her own particular situation. 

​When trucking companies lack the parts, equipment, or drivers necessary to deliver their cargo, they can hire other companies to complete the project. After both parties finish their negotiations, trucking companies will typically ask contractors to complete a trailer interchange agreement before giving their trailer to another driver.

​Key person insurance (also known as key executive insurance or key employee insurance) is designed to cover any losses that are associated with losing an essential employee. Whether you’re an executive at a Fortune 500 company or an entrepreneur running a brand new start up, key person insurance can protect the most valuable people in your business.

​Most business owners look for traditional business insurance policies when they shop for coverage. Commercial general liability (CGL) insurance, errors & omissions (E&O) insurance, business property insurance, and business interruption insurance are all popular choices for business owners. Unfortunately, these policies can also be too expensive for home-based businesses that rely on affordable coverage to protect their assets.

For most contractors, a General Liability insurance policy provides an additional layer of protection against third party lawsuits. If your client files a claim against your insurance policy, it should cover any legal fees or damages that are outlined in your contract.
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​Most business insurance policies are tailored to the needs of service providers, with plenty of coverage for professional negligence, mistakes, and poor industry practices. On the other hand, product liability insurance is designed to protect manufacturers, wholesalers, and retail business from lawsuits that filed because of their defective products.

​Homeowners insurance protects policy holders from multiple hazards, including fire, wind, and hail damage. Unfortunately, homeowners insurance was not designed to protect homeowners from the devastating consequences of natural disasters. The scope and cost of that property damage is far too great for any homeowners insurance policy to cover.

As the owner of a successful trucking business, you rely on experienced drivers to deliver their cargo and satisfy your customers. If one of your drivers is injured while they are in transit, you may be asked to pay for their medical bills and other related expenses.
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Unlike traditional staff members, truck drivers are typically hired as independent contractors. Your workers’ compensation insurance policy can protect you from employee lawsuits, but it will not pay for the medical expenses of independent contractors and other non-traditional employees.
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If any of your drivers are injured while they are working, occupational accident insurance can cover the cost of their medical expenses and protect your business from third party lawsuits.

How Does Occupational Accident Insurance Work?

Like workers’ compensation insurance, occupational accident insurance provides independent contractors with medical and disability benefits. Occupational accident insurance also offers accidental death and dismemberment benefits to truck drivers who receive life threatening injuries in the course of their work.
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Medical Benefits – If one of your drivers is injured while they are in transit, occupational accident insurance will pay for the cost of their medical bills up to the maximum limit of your policy. Most policies include medical transportation, care, and outpatient treatment in their list of covered medical expenses.

Disability Benefits – Occupational accident insurance also pays for disability-related expenses. If one of your drivers is unable to work due to a work related injury, occupational accident insurance will pay disability benefits that can help them recover financially. Occupational accident insurance will also pay for total disability benefits if your driver is unable to return to work.
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AD&D Benefits – Occupational accident insurance also provides accidental death and dismemberment benefits to independent contractors. If one of your drivers suffers from a debilitating injury, your occupational accident insurance policy will pay them a lump sum to compensate for their loss. If one of your drivers is killed while they are in transit, your occupational accident insurance policy will pay a lump sum to their designated beneficiary.
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Street Smart Insurance is committed to providing affordable coverage. Whether you are looking for your first truck insurance policy or you are shopping for a better price, our agents are ready to help. Call us at 732-462-8343 for a free quote!

As an experienced contractor, you know that one dissatisfied client can destroy your entire business. If one of your clients sues you because they are not satisfied with your work, you will have to divert funds from your business to pay for your legal expenses. General Liability (GL) insurance and Errors & Omissions (E&O) insurance are both designed to protect you from those third party claims, but they do not cover the same areas of liability.

General Liability insurance protects contractors from bodily injury and property damage claims. If your client or their customer is injured because of your work, General Liability insurance will pay for your legal defense. If your client or their customer suffers from property damage because of the work that you have performed, General Liability insurance will also pay for your legal fees. Unfortunately, General Liability insurance was not designed to protect service providers from third party claims.
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On the other hand, Errors & Omissions insurance protects contractors from professional liability claims. If your client sues you for breach of contract, design errors, or substandard work, an Errors & Omissions insurance policy will pay for your legal fees and any financial judgments that they are awarded.
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So Which One Is Better?

In the past, there has been a clear distinction between architects, engineers, and project management firms that provide services and general contractors who complete projects for hire. This separation has allowed contractors to purchase General Liability insurance as professionals who create products so that they can avoid falling in the category of service providers.
Today, many contractors are independent business owners who provide client services and complete projects. If you fall into both categories, you should have a General Liability insurance policy and an Errors & Omissions insurance policy to protect yourself from any potential lawsuits.
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Street Smart Insurance is committed to providing affordable coverage. Whether you are looking for your first general liability insurance policy or you are shopping for a better price, our agents are ready to help. Call us at 732-462-8343 for a free quote!

The Internal Revenue Service (IRS) states that a business expense can qualify as a tax deduction when it is ‘ordinary’ and ‘necessary’. An ‘ordinary’ expense should be a common expenditure in your line of work, and a ‘necessary’ expense should be appropriate for your small business. If any of your business expenses meet those two qualifications, they are tax deductible.