Some states require employers to have workers’ compensation insurance for workers that get hurt on the job. An alternative to this is called occupational accident insurance. It’s something businesses can offer to independent contractors. These policies usually cover medical, accidental death, disability, and dismemberment for accidents on the job. Occupational accident insurance coverage can benefit the employer and the employee.
This type of coverage is especially important for people who work in the transportation/trucking industry. Driving long distances can be dangerous. According to the United States Bureau of Labor Statistics, truck drivers are three times more likely to sustain nonfatal injury or illness involving days away from work than other private industry jobs.
How Does Occupational Accident Coverage Benefit Employers?
Occupational accident coverage, also known as OCC or ACC, can protect your business from costly litigation. If a worker is injured on the job, they could sue your company. The cost to defend this type of litigation could significantly impact your business’s ability to continue operations.
Other benefits for business owners include:
- You will be able to offer essential health and financial benefits to independent contractors if they are injured while under contract.
- Independent contractors are generally more inclined to choose contracts with companies that offer occupational accident coverage.
- This coverage helps highlight the distinction that independent contractors are not employees, the latter of which would require offering employee benefits.
While occupational accident coverage provides coverage for lost wages, medical fees, death benefits, etc. These policies usually offer very little for legal fees. This can create a risk for business owners who decide to choose this option instead of workers’ compensation insurance. If employers select the wrong type of coverage, it could leave their business vulnerable to financial troubles.
With a lawsuit, employers will likely have to prove that the worker’s injury or illness is not the cause, or no longer is the cause of the person’s condition. Proving this could be a lengthy and expensive process. That’s why companies who select occupational accident insurance coverage need to select the right policy limit to cover claims and other costs.
RRL Insurance: Experts in Transportation
Business owners have a lot of important decisions to make to start, maintain and protect their businesses. Our team at RRL Insurance can help guide business owners in the right direction. We have extensive knowledge of insurance solutions for public auto, truckers, waste/recycle haulers, construction equipment, and more.
You can visit our RRL Insurance blog to get more information on topics like this that impact the insurance industry. Our goal is to educate our clients on the latest trends and updates within the transportation industry. We also aim to inform our clients about aspects of the industry that may be confusing or not well-known. Read more of our blogs by clicking here.
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