Common questions from independent agents and brokers about 1099 Protect’s programs, processes, and positioning. If your question isn’t covered here, contact us.
What Is This?
What is Occupational Accident Insurance (OAI)?
OAI is a non-statutory accident coverage designed specifically for independent contractors. It provides medical, disability, and accidental death benefits to the contractor in their own name — they access their own coverage when injured, not through the hiring entity’s payroll insurance.
Is OAI the same as Workers’ Compensation?
No. Workers’ Compensation is a state-mandated, statutory coverage for W-2 employees. OAI is a commercial accident product for 1099 independent contractors. They serve legally distinct workforce classifications and are not substitutes for each other.
What does the WORK program cover?
WORK is 1099 Protect’s flagship program for any non-trucking 1099 commercial exposure — healthcare staffing, IT contractors, field services, professional services, install crews, and more. If a client hires 1099 contractors outside of commercial-auto trucking, WORK is the coverage chassis.
What’s the difference between WORK, Trucking and Last Mile Delivery, and Truckers Insured (Legacy)?
WORK covers all non-trucking 1099 commercial. Trucking and Last Mile Delivery covers commercial-auto 1099 fleets — OTR carriers, owner-operators, last-mile delivery, and install networks. Truckers Insured (Legacy) is a retired tiered trucking program available for existing agency placements but no longer the active program for new business.
Why Does It Matter?
What is 1099 misclassification?
Misclassification occurs when a business treats a worker as a 1099 contractor but the day-to-day relationship looks more like W-2 employment under federal or state tests. When the Department of Labor determines a worker was misclassified, the hiring entity becomes liable for back payroll taxes, retroactive overtime, statutory benefits, and penalties — often six or seven figures per worker.
Why is DOL targeting industries that use 1099 contractors?
Federal enforcement estimates billions in lost payroll tax revenue from misclassification each year. Audit budgets have expanded, and enforcement now routinely targets sectors with heavy 1099 usage — healthcare staffing, last-mile delivery, install networks, professional services, and trucking. A single uncovered 1099 injury can trigger an audit of the entire roster.
What is an Audit Defense Posture?
It’s the documented evidence that a hiring entity treated its 1099 contractors as genuinely independent — including ensuring each contractor carried their own occupational accident coverage. OAI is one of the strongest evidence pieces in that posture, since it demonstrates the contractor accessed benefits independently of the hiring entity.
How Does It Work?
How fast can a policy bind?
Most placements bind within hours of a clean application submission. The intake and underwriting model is built for speed-to-bind, not the multi-week traditional commercial cycle.
How do agents get appointed?
Visit Get Appointed in the main navigation, complete the producer agreement form (resident state license, E&O, W-9, voided check), and you’re typically activated within one business day.
What states are covered?
The active programs are available nationally. Specific limits and availability vary by program — see Agent Resources for current rate sheets, or contact us at quoting time for state-specific confirmation.
How do 1099 contractors enroll after an agency client signs up?
After the master account is established, each contractor completes a participant enrollment form. The platform supports per-driver electronic enrollment, bulk roster uploads, and automated census processing for high-volume clients.
Money & Process
How are commissions structured?
Commissions are paid as a percent of premium, monthly. Specific rates vary by program. See Agent Resources for the current rate sheets, or request appointment to view tier details.
Can the 3% credit card or ACH processing fee be passed to the contractor?
Yes. The billing platform (ePayPolicy) supports legally compliant pass-through of processing fees directly to the contractor — allowing the agency and the hiring entity to reclaim that margin.
Industries
Does WORK cover healthcare, IT, install crews, professional services, and similar industries?
Yes. WORK is designed for the breadth of 1099 commercial industries — traveling clinicians and home-health aides, IT contractors, field services, install crews, professional services. If the contractors are 1099 and the work isn’t commercial-auto trucking, WORK is the chassis.
Legacy Programs
What happened to Truckers Insured?
Truckers Insured remains available as a legacy program for existing agency placements. New trucking business typically runs through our active 48-State Premier or Last Mile programs. Existing agencies who need to place or service Truckers Insured business can access the legacy materials via Products → Truckers Insured (Legacy).