Recently Sen. Robert Rodriguez introduced Senate Bill 22-035 that would clarify minimum coverage levels for occupational accident insurance. This is a unique form of insurance that provides an affordable option for workers-compensation coverage for independent small-truck owners for trucks weighing more than 16,001 pounds and commonly known as owner-operators in the state.

It is an option currently used in all surrounding states for these trucking operators, but not Colorado. The cost of workers compensation for these small operators is about 9% of their net income, which makes it unreasonably expensive for most of them. In contrast, occupational accident insurance is one-third to one-half of the amount.  

The concept of occupational accident insurance is not a new one for the Legislature. The General Assembly already supported the concept of occupational accident insurance when it unanimously passed SB 18-178 in 2018, which allowed it to be an option to workers compensation for these operators. Though the legislation passed, a problem arose during the establishment of rules by the Division of Insurance for minimum coverage levels, where they indicated that additional clarity in the statute was needed. That created a need for SB 22-035 coming forward.

Occupational accident insurance is an insurance product specifically designed for independent small-trucking operators, and it possesses similar forms of coverage to workers compensation.  According to the Owner-Operators and Independent Drivers Association (OOIDA), which represents more than 150,000 owner-operators across the country, occupational accident insurance is by far the preferred form of work-related injury coverage by their members.

To be clear, these independent, small operators are not asking to opt out of any form of work-related injury coverage, which almost every other independent contractor in the state can do today. They merely wish the option to choose between workers compensation and a similar, but more affordable, alternative that exists elsewhere in the country. 

Many of us, earlier this year, supported King Soopers’ workers during their strike because of their importance to all of us during the pandemic. Those workers were essential to our well-being, and they were there for all of us during the worst of it.  

While those King Soopers employees have been essential during the pandemic, few may realize that without the small owner-operator truckers, much of the food, coming from across the country, would not have reached the store. They, too, have been essential during the pandemic. In addition, many other owner-operators have been key to keeping major construction projects going during the pandemic by hauling aggregate and other materials to and from construction sites. 

Some contend that these owner-operators are somehow being forced to drive for substandard wages. That makes little sense, especially in this job market. Currently the employment website Indeed.com reflects that there are more than 7,000 job listings for truck drivers in the state today. Both union and non-union companies are seeking drivers and wage levels for these jobs are substantially greater than the state average. Any of these owner-operators could easily have their pick of jobs and have several offers to be an employee truck driver within 24 hours. 

Why then do these truck drivers choose to be an owner-operator versus working as an employee truck driver? Many of them will tell you that this is a lifestyle and career choice. The importance of these factors is reflected in the job satisfaction level of these drivers where more than 75% indicate that they are “very satisfied” being an owner-operator. That percentage is higher than  employee truck drivers, as well as most other jobs or positions in our state.

The vast majority of these individuals have been employee drivers in the past. They choose to be an owner-operator because they wish to have the flexibility to be their own boss, choose their own truck – and equip it as they wish. They prefer to choose who they work with, what loads they choose to haul and when they wish to work. Further, they want to have equity (that is the truck) and wish the opportunity to earn more based on their own efforts. Many view this as their opportunity to start their own company and do as many others have done in the trucking industry in the past – where they start out with their one truck and then build it into a company that has many trucks. Others are free spirits who value their independence and the flexibility that being an owner-operator offers. 

Many of these owner-operators are minority- and disadvantaged-owned businesses, and a significant number of them are first-generation immigrants to our country. These individuals are seeking the same American Dream as many others have in the past in starting and owning their own business – something many of these immigrants from other countries would not have had the same opportunity to pursue in their home countries. Senate Bill 35 offers these individuals a better chance of achieving the American Dream. 

We commend Sen. Rodriguez for bringing forward SB 35. It is appropriate in our eyes that he brought forward this bill. The senator has consistently been a champion for small businesses, working people and minority-owned-and-operated businesses in Colorado. We hope that other legislators may join him and support these small-truck drivers who, like the King Soopers workers, were key to keeping our state going during the pandemic.

Rosy Aburto McDonough is the executive director of the Hispanic Contractors of Colorado, representing more than 160 general contractors, subcontractors, specialty contractors, construction-related services businesses and other members. James Martinez is the chair of the Hispanic Contractors of Colorado Legislative Committee for State and Local Affairs and is the owner and president of a local geotechnical engineering and construction materials testing firm .