Most employers have heard of workers’ compensation insurance. It pays medical benefits and provides wage replacement should an employee be injured at work. However, there is another type of accident insurance for employees that business owners should know about and understand.
Occupational Accident Insurance
Businesses may opt to provide occupational accident coverage to contract workers or to employees not covered under workers’ compensation packages. Occupational accident insurance offers coverage in multiple areas, including:
- Medical expenses
- Lost wages
- Death benefits
Depending on laws in their states, a business may choose to carry occupational accident insurance rather than workers’ compensation. There are specific benefits and risks involved.
Advantages of Occupational Accident Insurance
These types of policies cost about half the price of state-regulated workers’ compensation policies. Furthermore, companies can choose disability coverage, limits, and deductibles. However, while these lower up-front costs may sound appealing, there is a big caveat with this type of coverage.
Disadvantages of Occupational Accident Coverage
If you do not choose enough policy coverage of the correct type, you could leave your business unprotected in the event of a lawsuit. With occupational accident policies, the burden of proof is on businesses rather than employees.
Injury claims can be complex and long. Without enough coverage, your business could be put under severe or catastrophic financial strain.
There are advantages to each of the types of worker accident policies available. You must weigh the pros and cons of each. Ultimately, the best decision for you is one that protects you as well as your employees.