Occupational accident insurance is a coverage that can help in the event of an injury in the workplace that could cause someone to miss time. In almost any line of work, certain risks come with the job. That’s why employers need to have the right type of insurance coverage for their business. Moreover, it can provide financial benefits to independent contractors in case of injury or death caused by a work-related activity or event. It serves the same purpose as workers’ comp for company employees but for independent contractors. 

What is Occupational Accident Insurance?

Occupational accident insurance is a type of coverage specifically designed for independent contractors that work in high-risk environments. The coverage provides financial benefits in case of death or injury due to workplace accidents. It also pays for the medical expenses and lost wages resulting from absences and protects employers against potential lawsuits and injury claims.

What is the Difference Between Occupational Accident Insurance and Workers’ Comp?

Workers’ compensation is a state-mandated program that benefits employees who suffer an injury on the job. Employers obtain occupational accident insurance to cover independent contractors against similar situations and to protect the business against costly lawsuits and liability claims. 

Independent contractors need the same insurance protection that workers’ comp provides to employees. Because the company doesn’t employ them, contractual workers don’t qualify for workers’ comp. 

However, they may file a lawsuit or seek damage and injury claims from the company owner if they suffered an injury on the job. By getting occupational accident insurance, policyholders cover these workers’ medical and treatment needs while protecting the company from financial loss.

Let’s say a worker slips and falls on the factory floor. If the individual in question is a full-time employee of the firm and suffers an injury while performing work-related duties, workers’ comp will cover the cost of treatment and lost wages. 

Now, if a hired contractor is working on the same project and experiences a similar injury, they won’t always be able to get workers’ comp benefits because they aren’t full-time employees at the firm. Instead, they may file an injury claim under the employer’s occupational accident insurance policy.  

When Should Employers Get Occupational Accident Insurance?

The simple answer is: as soon as possible. While no one wants to think about the possibility of getting injured on the job, it’s essential to have a preparation plan for any eventuality. This insurance coverage can provide peace of mind for employers that routinely employ contractual workers in high-risk environments with a high likelihood of injury or death. 

Benefits and Drawbacks of This Coverage

Employers must decide whether workers’ comp or OAI is better suited to their needs. With workers’ comp, employees have adequate coverage for injuries sustained on the job. However, they cannot file suit for punitive damages or make a claim for pain and suffering, which reduces the employer’s liability significantly. 

Of course, workers’ comp is a requirement in most states, so most employers will have no choice but to get it anyway. But employers should note that workers’ comp is generally more expensive than occupational accident insurance. 

Employers that regularly work with outside contractors should consider getting occupational accident insurance. It provides them the same protection against lawsuits as workers’ comp and is much more flexible. Employers could even choose from survivors’, disability, or accidental death benefits. It gives independent contractors the same protection that workers’ comp affords regular employees.

About InsureMyWorkComp

InsureMyWorkComp is a digital brokerage that helps clients find the right workers’ compensation solution for their business needs. Unlike other online platforms, we will help you to work with an agent who can provide you the right solution for your risk profile. Our staff has over 50 years of workers’ compensation underwriting and sales experience, and we are confident that we will provide you the support that you need. For more information or to get a quote, contact us today at (855) 340-9138