Navigating the insurance world alone is certain to cause frustration and headaches. Plus, it takes a ton of time. But ensuring contracted workers (ICs) have the proper coverage is a critical factor in protecting your business, as well as theirs. Luckily, Openforce helps streamline and simplify the process from start-to-finish so that ICs can spend less time down the insurance rabbit hole and more time on the road.
Through our insurance subsidiary, ICM Insurance, LLC, we partner with a variety of trusted insurance partners to empower both ICs and your business with choices for better coverages at better prices—so you’re both protected.
Recently, ICM Insurance Services partnered with One80 Intermediaries, a highly specialized insurance brokerage with expertise in insurance coverages for the transportation industry. This partnership offers General Liability, Cargo, and While Under Dispatch (WUD) insurances. What’s important to know is that these coverages were specifically designed to meet contractual requirements at competitive market prices.
While having General Liability and Cargo insurances seem like a no-brainer, oftentimes WUD is a tougher sell for ICs. Let’s learn more about the benefits of having WUD insurance and why it’s a critical coverage to protect both parties in a contract.
If an accident happens when an IC is under dispatch for your company, a WUD policy can help cover what a personal auto policy may not. Most personal auto policies have business/commercial use exclusions which means they may not cover damages in the event of an accident that occurs during the performance of delivery services. WUD is a specialized commercial liability policy that is designed specifically to provide that coverage. While ICs need to maintain their personal auto policy for vehicle registration, having this coverage is advantageous for both you and your independent contractors.
Let’s look at an example scenario of how WUD insurance applies during an accident:
It’s Friday evening, and the IC is not under dispatch driving their son to soccer practice in their minivan. On the way, they swerve to avoid hitting a deer, crashing into a tree causing damage to the minivan. Here, the IC’s personal auto insurance would cover the accident because the minivan was in use on personal time.
Fast forward to Monday morning – the same IC is under dispatch with your company under contract, delivering packages in the same minivan. On the route, the IC fails to stop in time and rear-ends the vehicle in front of them, causing injury to the other driver and damage to the other vehicle. This is where the WUD policy kicks in, because the accident happened while the driver was under dispatch.
Unfortunately, accidents happen. And it’s costing businesses billions. In a recent report, traffic crashes cost businesses an astonishing $72.2 billion in 2019, up from $47.4 billion in 2013.
Without proper insurance coverage, chances are the IC involved in the accident will not be financially able to cover the damages themselves. So, guess who that injured third-party is coming after? That's right, your business!
In the blink of an eye your business is liable for a hefty bill. Worse yet, your business can be found negligent for not showing due diligence in making certain your IC workforce had proper coverage. That’s a double whammy nobody wants to deal with.
Luckily, a specialized WUD policy is available to help cover these types of damages. It will not only protect ICs, but your business and reputation. Without it, just one accident could be absolutely devastating to your business.
As stated earlier, insurance is, quite frankly, not something that most of us look forward to researching and then paying for. That’s why working with a third-party administrator such as Openforce can help immensely in streamlining the administrative process while providing assurance that these coverages are backed by experts in the logistics industry.
Here’s what you can look forward to with Openforce’s subsidiary, ICM Insurance services, specifically with WUD coverages:
Most of us are not willing to pay for things we don’t need, and we shouldn’t! However, when it comes to protecting your business as well as the independent contractor, having WUD insurance could potentially help avoid what could be your costliest mistake.
Reach out to your client services representative or to sales@oforce.com today to learn how Openforce and ICM Insurance Services, LLC can come together to make sure your IC workforce is insured—the right way.
Disclaimer: The WUD coverage is available to enrolled ICs affiliated with Openforce. ICs must maintain their personal auto policy for vehicle registration but can select the personal limit without regard to minimum business requirements. The WUD coverage is for liability only and does not provide physical damage coverage for the insured’s automobile. All policies are offered through ICM Insurance Services LLC. *Coverage is subject to policy terms, conditions and exclusions.