Occupational Accident Insurance

Occupational accident insurance is an alternative coverage to workers' compensation insurance that can help protect your business against the cost of work-related injuries, illnesses, accidents, and fatalities. Occupational accident coverage can be purchased by businesses that aren't required by law to carry workers' compensation insurance. This coverage can be an affordable way to protect your company against the hefty cost of occupational accidents to workers and potential resulting employee lawsuits. 

A local independent insurance agent can help you find occupational accident insurance that works best for your business. They'll get you set up with the ideal amount of coverage. But first, here's a closer look at occupational accident insurance, what it covers, why it's necessary, and more.

What Is Occupational Accident Insurance?

Occupational accident insurance is a special type of business insurance that offers accident benefits to independent contractors and employees not covered under workers' compensation. 

An occupational accident policy is a cost-effective way to protect your business and its workers against costs related to job-related accidental death, injury, and illness. Occupational accident insurance provides coverage for many costs associated with on-the-job accidents that cause short-term or long-term harm to employees who have to miss work and cannot collect their typical wages during recovery. 

This coverage is a convenient form of contingent liability insurance. Because many workers are independent contractors or operators, they're not covered under a business's workers' comp policy. If a work-related accident happens to one of these workers, they might sue their employer to cover the cost of the injury or illness, including lost wages. 

While workers' comp exempts covered employees from suing their employer, independent owner-operators don't have this exemption. However, having occupational accident insurance is a great way to protect your business against worker lawsuits for job-related accidents if these employees aren't covered by workers' comp.

What Is an Occupational Accident?

Occupational accidents can happen to workers in any industry. For example, a trucker could get injured while unloading cargo at their destination. Though the trucker may be an independent contractor or driver not covered under their motor carrier's workers' compensation, occupational accident insurance could reimburse them for the cost of medical expenses necessary to treat their injury and provide partial wage replacement during the time off work during recovery.

A non-occupational accident would be any accident that took place outside of the course of performing job tasks, such as a slip and fall on an icy sidewalk after returning home from work. Non-occupational accidents are not covered under occupational accident insurance. You'd need to rely on a health insurance or disability insurance policy to cover medical expenses related to incidents that occurred outside of work.

Who Needs Occupational Accident Insurance?

Employees who aren't covered under workers' compensation by their employer by state law can benefit from occupational accident insurance. This coverage is necessary for certain industries more than others due to official regulations for workers' comp. Some of the most common occupational accident insurance policy customers include:

• Owner-operators
• Truck drivers, independent drivers, and contract drivers
• Transportation companies
• Trucking companies
• Gig economy workers

As you can see, the trucking industry is one of the biggest occupational accident insurance customers, as this coverage can protect independent drivers and owner-operators. 

Truckers often do not have workers' compensation coverage from their employer, as many are independent. An occupational accident insurance policy can protect truckers against risks on the job that can lead to injuries, illnesses, dismemberment, paralysis, and death. 

What Is OCAC in Trucking?

OCAC, or occupational accident coverage, protects trucker owner-operators as an alternative to workers' compensation. These policies are also referred to as contingent liability insurance. OCAC can be purchased directly by owner-operators or by their motor carriers. Coverage can reimburse affected truckers for the following:

• Medical expenses
• Accident death and dismemberment
• Total disability expenses

OCAC benefits provide compensation for truckers who sustain injuries or illnesses due to job tasks, such as loading and unloading, or their work environment. In certain cases, a trucker's passenger may also be covered by occupational accident insurance.

What Does Occupational Accident Insurance Cover?

Occupational accident insurance can reimburse businesses and employees for many costs related to workplace injuries and accidents, including those in non-trucking industries. This coverage can provide compensation in the following ways:

• Partial wage replacement
• Accidental disability benefits
• Accidental medical expenses
• Accidental death benefits
• Accidental dismemberment benefits
• Accidental paralysis benefits

Depending on which insurance company you get to underwrite your occupational accident insurance, its coverage may vary. Research several companies before you purchase your policy. You'll want to find a trustworthy underwriter with a good track record of paying out claims to policyholders in need.

What's Not Covered by Occupational Accident Insurance?

You'll need to review your specific policy to be aware of its exclusions. In general, occupational accident insurance doesn't cover any of the following:

• Non-occupational accidents, injuries, illnesses, disabilities, and fatalities
• Third-party lawsuits
• Commercial property damage

The costs of injuries, illnesses, etc., that don't exceed your policy's deductible are also not eligible for compensation. 

Remember that you must pay your policy's deductible before receiving compensation from your insurance company each time you file a claim. Because of this, you must be prepared to cover the cost of any minor injuries and illnesses on your own.

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How Much Does Occupational Accident Insurance Cost?

The cost of occupational accident insurance can vary based on many of the same factors that influence the cost of workers' comp insurance. These can include:

• Business industry
• Location
• Annual salary
• Job tasks and risks
• Prior claims history

Depending on how many claims you've filed in the past, your coverage may be considerably cheaper or more expensive. Work together with a local independent insurance agent to find affordable occupational accident insurance near you.

An Independent Insurance Agent Can Help You Get Occupational Accident Insurance

Independent insurance agents have access to multiple insurance companies, so they're free to shop and compare quotes for you. They'll ultimately present you with only the results that represent the best blend of coverage and cost. And down the road, your agent can even help file claims for you and update your coverage as necessary.