State-mandated coverage for on-the-job injuries to your W-2 drivers and employees. Texas is the only fully optional state.
Medical care, lost-wage indemnity, vocational rehabilitation, and death benefits for W-2 employees injured in the course of employment. Workers' Compensation is state-mandated for virtually every employer with W-2 employees (Texas is the only fully opt-out state, and even then opt-out has different cost dynamics). Premium is rated by payroll, by classification code (e.g., NCCI code 7228 for local trucking, 7229 for long-haul), and by your experience-modification factor (X-mod).
These are public-facing baselines for typical risk profiles. The intake re-derives line-specific limits based on your actual operation, contract obligations, and loss profile.
From the panel that ranks top-3 per line for your risk profile. Each carrier clears the A.M. Best A- floor; final selection is made in the piece-out matrix at quote time.
If my drivers are 1099, I don't need WC.
Only if they're truly independent contractors under the relevant test (federal AB5-equivalent, IRS, state). If a state recharacterizes them as employees, you owe back WC premium, penalties, and the full state-mandated benefits. Multi-state misclassification audits are common.
My experience modification (X-mod) is set by my agent.
X-mod is calculated by NCCI based on your actual loss experience over three years. The agent has zero say. The way to lower X-mod is to reduce claim frequency and severity — and to dispute incorrect loss reporting promptly.
Texas is no-WC, so I don't need anything.
Texas allows opt-out, but a non-subscriber loses traditional WC defenses and is exposed to direct tort suits from injured employees. Most large Texas employers carry WC anyway, or buy alternative non-subscriber coverage.
Payroll × class-code rate × X-mod × misc factors. For trucking, NCCI class 7228 (local) and 7229 (long-haul) are the primary codes; misclassification (using a clerical code for a driver) is an audit risk.
A multiplier (1.00 = baseline, <1.00 = better-than-average loss experience, >1.00 = worse). A 0.85 X-mod cuts your WC premium by 15%; a 1.25 X-mod adds 25%.
Either by separate state-specific policies or by 3A / 3C 'Other States' coverage on a primary policy. Multi-state operations without proper coverage trigger state-by-state non-compliance penalties.
WC pays statutory benefits to injured employees. Employers Liability pays for tort suits the employee or family brings beyond WC benefits (e.g., gross-negligence claims by survivors). Standard policy includes both, typically $1M / $1M / $1M limits.
Yes — through claim-frequency reduction (driver safety, return-to-work programs), accurate class-code assignment at audit, proper subcontractor certificates (so their payroll isn't included in yours), and X-mod dispute when NCCI miscalculates.
One intake. Per-line submissions to your top 3 carriers. A coordinated binder.