GigSafe is a 3rd-party administrator that helps companies onboard, insure and pay 1099 contractors like you. With GigSafe, companies remain compliant and ensure that they can continue to provide you with valuable independent work opportunities.
On your pay statement, you may notice some deductions. Let’s go through each of those line items so you understand what they are:
INSURANCE DEDUCTIONS
As an independent contractor and commercial driver working with us, you may be required to maintain insurance, depending on the company providing opportunities. To make things easier for you, we’ve sourced the right coverage at highly competitive rates, ensuring you’re only paying for what you truly need, at the time you need it.
You might notice some deductions on your pay statements related to this coverage and compliance. Below, you’ll find more details about each of these items, along with an example:
🤕 Occupational Accident Coverage (OCAC) : On-the-job accident and injury coverage that provides up to $1M in benefits per covered incident. Occupational Accident Insurance is the insurance industry’s solution to supplement worker’s compensation during workplace deliveries and trips. All independent contractors must have this insurance if you are to be compliant, as personal automotive policies typically won’t cover a driver's claims made while they were under dispatch.
Example: You are in an accident while delivering for ABC Delivery Co. Unfortunately, you were injured and are out of out work for several weeks. You submit a claim to GigSafe, it’s approved after a review, and you receive several benefits, including coverage for hospital bills and temporary total disability for the time that you cannot accept work.
🚗 Commercial Auto Coverage: 3rd-party automotive liability coverage that triggers in an accident in which you, as a commercial independent contractor, are at fault - up to $1M per incident. If you have a vehicle that you use for commercial purposes, then you need commercial auto insurance, as your personal auto policy is unlikely to cover you while working.
Example: You are in an accident while delivering for ABC Delivery Co. Unfortunately, you are at fault and cause injury a person and damage to their property. The third party submits a claim to GigSafe, it’s approved after a review, and the person you injured receives several benefits including payments for hospital bills and repair or replacement costs for their property.
Please note:
🧾 These are business expenses that you, as a 1099 worker, are responsible for.
🏦 Since these are business expenses, they are potentially tax deductible.
💲 Payments are only made via settlement deductions and paid only when you make a delivery.
📩 Please reference the Policy Overview in your GigSafe Welcome Email to understand the full coverage you participate in.
🚨 Coverage only applies to GigSafe reported deliveries completed by drivers that meet certain compliance requirements including, but not limited to, having a valid Driver License, maintaining State Mandated Personal Coverages, and passed motor vehicle records.
ADMINISTRATIVE, PAYMENT PROCESSING, AND COMPLIANCE FEES
💰 Settlement fee or Payment Processing Fee: This is charged per settlement and covers costs incurred when paying you.
✅ Contractor Admin Fee or Contractor Compliance Fee: Provides for the software and administrative overhead associated with contractor compliance including, but not limited to, document, motor vehicle, and payment method monitoring.
Have questions about these deductions?
Contact GigSafe Support:
Chat: Tap/Click the chat bubble (bottom right)
Email: help@gigsafe.com