Contract Liability Coverage

Contract Liability Coverage for Motor Carriers with Owner-Operators and Casual Laborers

Protecting your business from unintended liability exposures is essential when working with independent contractors. IAT Insurance Group offers Contract Liability coverage designed specifically for motor carriers who partner with owner-operators and casual laborers. Written on TransGuard Insurance Company of America paper, this coverage provides strong legal and financial protection when questions arise about employment status and Workers’ Compensation responsibility.

Protection Against Misclassification Claims

In the commercial trucking industry, disputes can arise when an owner-operator files a Workers’ Compensation claim asserting employee status. Contract Liability coverage helps protect motor carriers in these situations by providing legal defense and financial support if an insured independent contractor files for Workers’ Compensation benefits as though they were an employee.

This coverage is included at no additional charge for motor carriers utilizing our Settlement Deducting program, offering valuable protection without increasing operational costs.

Comprehensive Legal and Financial Support

IAT’s Contract Liability coverage offers significant protection with:

$5 million limit per claim
No state exclusions
Defense costs paid outside the limits
Limits separate from Occupational Accident coverage
Indemnification for the motor carrier and their Workers’ Compensation carrier

These features help ensure motor carriers have the robust backing they need to navigate complex legal challenges while maintaining compliance and continuity.

Tailored for Motor Carriers with Independent Contractors and Owner-Operators

For fleets operating with owner-operators and/or casual laborers, Contract Liability coverage delivers peace of mind by helping safeguard against misclassification disputes. This support allows motor carriers to continue building strong contractor relationships while minimizing legal exposure and financial risk.

Partner with IAT Insurance Group

Choosing IAT Insurance Group ensures motor carriers have access to robust Contract Liability coverage, protecting against legal disputes when owner-operators or casual laborers file Workers’ Compensation claims. Our team leverages industry expertise to provide tailored protection and peace of mind for independent contractor operations. All coverages are membership benefits exclusively offered through the National Association of Independent Truckers, LLC (NAIT), underwritten on TransGuard Insurance Company of America paper.

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