Kevin. It is good sense for the company to have the O/O to sign a "1149 form" from the WSIB people. The WSIB has to decide if the Broker does or does not have to be covered by WSIB by your company. Then in the brokers contract state that the broker has to have a minimum amount of Insurance. Should the broker be hurt on the job and not have disablity insurance, the WSIB will cover the broker, and basically send the bill to your company. Along with an audit and penalities for the broker who is now hurt and now under your WSIB coverage.
The first thing a doctor or hospital asks when seeing a hurt person is "where did you get hurt" answer " at work while driving or unloading or...".
This statement is now sent to WSIB.
Put it in the brokers contract. Then they have to comply. DUE DILIGENCE will protect your company from penalities from WSIB.

Trucking companies and all companies that deal with commercial auto fleets of any kind, need to practice due diligence, when dealing with O/O before becoming 'victims' of the WSIB. The Regulatory Modernization Act, 2006 [also known as Bill 69] will encourage more charges being laid and stiffer sentencing penalties of companies, owners, directors and managers who have had convictions under any other statutes. Because of their serious unfunded liability, expect the WSIB to become the leader in enforcement under this act.
Recent Workplace Safety and Insurance Act, Tribunal decisions have been in favour of those persons NOT covered by WSIB having the right of action. In other words, giving the injured the right to sue the business and business owner in the event of an injury.
In addition, the fleet auto and commercial general liability policy deems 'everyone under the direction' of the company to be an employee. Without the proper disability coverage, the fleet auto could end up paying for bodily injuries, adding to the loss run ratios. Therefore, it is crucial to take the proper measures to 'bulletproof' the company. Signing the 1149a is one side of the coin, the other side is to implement a 'comparable' WSIB plan with a transport specialist that knows.

Johnny As I am sure you know it is easier said than done. This particular O/O is the type of person that knows everything has done everything and refuses to listen to advice, from us. We negotiated a package for all the O.O to look into. We cannot force them to take out any ocverage. They do have to provide us proof. Most don't care.
As for Martin's comments we have the WSIB release and it really is not worth the paper it is written on. Ask your Insurance company, who gets sued if the driver is hurt. Which of course ultimatley reflects on us as the company. We can do all the due diligence we want but as long as every lawyer in the U.SD. more so than in Canada continues to sue anyone and everyone. WSIB is like a union a great idea gone wrong. Too many rules too many regulations, and the foresight got lost in the shuffle. Always there to place blame and take more money than to assist

Hi Kevin,

As a specialist in this market in the last 15 years and 28 years of experience in the insurance industry. Due Diligence rests both the contractual employer and the advisor that professional due diligence has been exercised protecting all parties to contact. Irrespective of ownership, type of relationship, it is up to the company to utilize profits to defend their actions. There are many great products in the market place, they all have their place in the market. Understanding the underwriting and adjudication process helps customers and advisors choose solutions, however many times they are misguided, underestimate their needs and the total coverage required until its too late. This is common with catastrophic claims, illness claims that may or may not be work related.

There is a great need for many transport companies to acknowledge their potential risk exposure. Unfortunately, without the transport carrier taking the necessary steps to research the market and utilize a advisor to administrate their overall corporater policies, there is always remove for a potential liability claim.

WSIB coverage is an employer product, thus the utilization of contractual suppliers requires that added level of compliance by the tranport carrier to protect their customers and themselve. The Life Insurance industry caters products that meet the wants and need of the public. In trucking, product offerings with market share offer little protection for the individual or transport company they address primarily short term claims with many limitations that a company should concern themselves that will impact profitability.

At this time, these benefits are gauged on affordability and not so much the potential risk exposure since majority of them focus on operations; the skill of driving. Investing in protecting your quality human resources equals loyalty, loyalty exists only with understanding. Actions speak louder the words.

Comparing WSIB and private insurance; the average cost for a INJURY ONLY policy is $1,200 annually or $1,349.00. This is ACCIDENTAL coverage, generally short term claims or catastrophic resulting from an accident. The limits or accidental medical expenses minimal in the face of catastrophy, exposing the transport carrier. This really is NOT an effective form of coverage nor deterrent to ensure the owner operators are back to work.

Now, WSIB, excluding the annual administration may cost from $3,600 to $4,000 a year pending his or her Gross Earnings. This cost is what is confusing the transportation industry.

To buy proper insurance protection for a 45 male NS for $2,000 a month would be $2,575. He/she can now choose to cover themselves for health & dental, out of province add another $1,300 a year. We are at $3,875.00 a year for coverage at home, work or play, across the border or in Canada, the U.S. and its territories. Coverage for any type of accident, sickness and provides the least amount of hassles at claim time while absorbing some of the loss no different than an auto or property policy deductibles, 1 months pay.

The problem the solution 9 out of 10 times is never presented; yet common complaints is that they are both useless, WSIB and personal insurance. Easily administrated products that later cause many to be disillused as to what is the solution for benefits.

As you know our goal is to make this industry a better place. Many expenes are not properly allocated and inspite of the many complaints of the affordabilty of private insruance. The cost of WSIB, Group Health & Dental is equal to what they would have to pay if these owner operators understood the social programs. There is NO ONE escaping taking responsibility for any cause of disability in Canada. The responsibility is on the private sector. Thus the relationship does place a transport carrier in the fidiciuary responsibility seat. it is up to the carrier to ensure that the products and services they choose to implement within their organization will protect their "arm's length partners as they represent 1, 2 or 3 carriers".

The administration of these benefits integral to protecting all parties and traditional group benefits not an option for Transport Carriers contractual suppliers due to the inherent liability that preents this out sourced suppliers.

The moral of the story, An advisors that understands your corporate mission, contracting, goals and exercise the utmost professiional due diligence and ensure that the product or service being afforded would NOT impact your fleet insurance, Comprehensive General Liability Policy or Umbrella.

A profitable fleet is an advisor managing all your owner operators excercise the utmost due diligence, leaving policies in force that cannot be interrupted due to pre-existing conditions and that does not reduce your overall coverage.

Transportation would be a better place if professional due diligence was exercised and advisors took the time to listen to your needs as the transport carrier and convey them to your contractual supplier. Not easy but some of us have a system available on a consulting basis for general or life insruance brokers and costs absolutely nothing to the transport carrier.

Loved your article,

Lina D.

Anybody try and read their respective LTD insurance? When I was diagnosed with a chronic disease in Sept of 07, and needed help for some time, until I got back on my feet, I was given nothing but aggravation and stress! My wife and I had more loop holes to go through than a plate full of noodles.
You better read through your LTD insurance, and if you have an insurer like Great West, you may find out it is only good to you if you are flat on your back, in bed, and unable to move!
Otherwise the best defense to a lengthy illness is putting money aside for that "Rainy day!"

This is a great posting. I recently inquired about coverage for O/Os and was surprised to see how much fluff was thrown at me. If I were not as well informed about insurance coverage I would have had the impression the coverage is pretty good. But very trucker should seriously consider these things before going ahead with a company: are the benefits lifetime, or only for 2-5 years? Are the benefits integrated, which means will other benefits and income be deducted from the benefit? In other words, a person could be expecting (and paying for) $700 per week, but will likely only ever get $400 or less! Make sure the company you go with is first payor. Do they have a review board, a board set in place to challenge every claim that comes in? Do they include soft tissue injuries? Do they give 100% return of premium? Even if claims have been made? How long does it take to receive a claim payment? Months or days? Are claims based on your doctor or chiropractor's recommendations? Is the underwriting done at the time of a claim? (The implications here are huge: companies that do the underwriting at the time of a claim (that's most of them) are happy to collect your premium but then at the time of a claim they could come back to you and REJECT your claim on the basis of something they have found, years after you have started paying your premiums! How does the company define "totally disabled"? You should only go with a company that defines it as being unable to do your regular physical duties. Usually it is defined as being unable to do ANYTHING, or first your own work for 2-3 years, and then anything after that. That's really important. As of this writing Penncorp is the only company that addresses all of these issues. Send me an email for a free quote. Richard@myPenncorp.ca