The Importance of a Valid CDL for Owner Operators

November 8th, 2023

The world of Owner Operators and Motor Carriers is filled with complexities and requirements that need careful attention.  One such requirement is the need for a valid Commercial Driver's License (CDL).  However, the significance of maintaining a valid CDL extends beyond the need to operate a Commercial Motor Vehicle (CMV).  It also plays a critical role in Occupational Accident Insurance and Contingent Liability Insurance.

CDL: Disqualification vs Suspension

Before we delve into the importance of a CDL for insurance coverage, let us first understand the difference between CDL disqualification and suspension.  A disqualification allows the driver to continue operating a standard vehicle but not a CMV.  On the other hand, a suspension means the driver may not operate any vehicle.

It's important to note that not only driving-related offenses and violations can lead to CDL disqualification or suspension.  Other factors, like not paying child or spousal support or keeping up with DOT Medical Certification, can also lead to these outcomes.

CDL and Occupational Accident Insurance

Occupational Accident Insurance is a crucial coverage option for Owner Operators and Contract Drivers.  This insurance provides coverage for work-related injuries and illnesses.  However, most Occupational Accident Insurance policies require the policyholder to possess a "valid and current Commercial Driver's License" as a condition for coverage.  This means that if an Owner Operator’s or Contract Driver's CDL is disqualified or suspended, their insurance claim can be denied.

CDL and Contingent Liability Insurance

Similarly, Contingent Liability Insurance, which protects a Motor Carrier from an Owner Operator or Contract Driver seeking Workers Compensation benefits, also often requires a valid CDL.  Failing to possess a valid CDL may lead to denied claims under many Contingent Liability Insurance policies.  This can pose a significant risk for Motor Carriers who may be unaware of their Owner Operator's or Contract Driver's license disqualification or suspension until it's too late, i.e., when an on-the-job accident occurs and claim denial happens.

The Bottom Line



A disqualification or suspension of a CDL can financially devastate a Motor Carrier.  It can lead to denied insurance claims, which may result in E&O claims against their Insurance Agent.  Therefore, it's crucial to stay updated with one's CDL status.  Remember, the road to success is paved with due diligence.

To learn more about Workforce Insurance Underwriters’ No CDL Requirement in our new Occupational Accident and Contingent Liability Insurance programs, click here.

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