Transportation Workers Compensation

Transportation Workers Compensation

Eligible California Classes for Transportation WC Program:

  • 7198 Parcel Delivery
  • 7219 Trucking
  • 7232 Mail Delivery Service
  • 7360 Freight Handlers
  • 7382 Bus / Limousine Operations
  • 8292 Warehouse – General Merchandise
  • 8350 Gasoline / Oil Dealers
  • 9403 Garbage Collection

Virtually no class code is necessarily good or bad. It really depends on how the individual accounts you are writing fit into that class.

The WC rate for a certain class code is made up from the experience (payroll and claims) of lots of individual accounts that have some common characteristics but also some different characteristics (Class Codes are broad due to the need for credibility).

Since the rate is the average from all the individual accounts – some accounts will be better than average (rate redundant), some accounts will be average (rate adequate) and some accounts will be worse than average (rate inadequate)

Transportation WC Analysis

In transportation risks – we see the biggest difference between an above average account and a worse than average account is the material handling (loading and unloading, baggage handling, people handling)

Bus and Limo Class Analysis Example

The key to this class is an understanding of how prevalent material and physical handling of people there is. Not the driving exposure (which is a big concern on the Casualty side)

Example of above average in class:

  • Charter bus service (day tour bus),
  • Municipal type bus contractors
  • Corporate commuter buses for large corporations
  • Limo service for corporate executives or stars.

Example of Average Class Fit:

  • A bus / limo driver that does a medium amount of handling
  • School bus contractors

Example of below average class:

  • Airport Shuttle Service
  • Para Transit Service (Non-Emergency Medical Service)
  • Most other Limo Companies

Loss Control:

Handled internally at Midwestern with use of outside vendors in California


California claims are currently handles by Sedgewick.

Billing Options:

We have installment and payroll reporting options – 15% down (can make exceptions for 10% down). Taxes are pro-rated though the policy – not paid all at once.

Submission Requirements:

  • Acord Application
  • Supplemental Application (Attached)
  • 5 Years currently valued Loss Runs
  • Ex Mod Worksheet (If Available)

Items Underwriters Focus On:

  • Want to get a good description of operations
  • Want to get an hourly rate of the drivers
  • Information on how the material handling is done