Occupational Accident Insurance Coverage

Occupational accident insurance (OAI) can help protect businesses and their workers from financial losses after an on-the-job accident. It’s often used by independent contractors or workers who are not covered by the traditional workers’ compensation program. If you want coverage for both workplace and non-workplace injuries, you might also consider Aflac’s accident insurance for individuals. Here, we discuss how OAI works and who might consider getting an OAI policy.

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Key Takeaways

Occupational accident insurance policies typically help cover expenses related to workplace injuries, such as medical costs, disability benefits, lost wages, and death benefits.
You might consider an OAI policy if you’re an independent contractor, work in a high-risk industry, or are otherwise ineligible for workers’ compensation.
Aflac’s accident insurance for individuals is supplemental coverage (additional insurance for expenses your primary insurance doesn’t cover) that can also help provide coverage for accidents occurring both on the job and outside of work.

What is occupational accident insurance?

Occupational accident insurance is a type of accident insurance that offers financial protection for individuals like independent contractors and sole proprietors who may not be eligible for traditional workers’ compensation. If you’re an employee of a business, you’re typically protected by your state’s workers’ compensation program, which pays you if you’re unable to work due to a workplace injury.¹ However, independent contractors or sole proprietors can still get hurt on the job, but they’re ineligible for workers’ compensation. OAI can help those individuals after being injured in a workplace accident.

What does occupational accident insurance cover?

After a workplace accident, you can submit a claim to your insurance provider to receive benefits to help with bills and expenses that could otherwise cause significant financial stress. Each policy is different, but generally, OAI may help cover:

Lost wages: Financial support when you’re unable to work for an extended period of time
Medical costs: Benefits for hospital stays, surgeries, rehabilitation costs, and prescription drugs
Disability benefits: A portion of weekly wages for a temporary disability, like a broken bone, or a permanent disability, such as dismemberment
Death benefits: Financial support provided to a worker’s family in the event of an accidental death on the job, helping cover funeral expenses and other costs

Who should get occupational accident insurance?

Occupational accident insurance isn’t necessary for everybody. However, there are some types of workers who might consider the financial protection of an OAI policy, including:

Independent contractors and owner-operators

Contractors and sole proprietors who own businesses without employees are typically not required to carry workers’ compensation. But that doesn’t mean they still can’t get hurt on the job.

1099 employees

If you work for a company as a 1099 rather than a W-2 employee, you don’t have the same benefits, including workers’ compensation.³

Those who work in industries with high risk

Some industries, like trucking or mining, tend to be higher risk than the typical desk job. If you work in a high-risk injury but are not eligible for workers’ compensation, it’s a good idea to consider an OAI policy.

Small businesses not required to carry workers’ compensation

Each state sets its own rules, so it’s possible you may not be required to carry workers’ compensation. Nonetheless, it may be a good idea to encourage employees to have an occupational accident insurance policy. If they’re hurt on the job, OAI does not protect your business from liability, but the OAI benefits may keep the employee in good financial shape and help avoid litigation.

Full-time and part-time gig workers

The gig economy offers people a great opportunity to be their own bosses and set their own schedules. But if you slip and fall while making a delivery, for instance, your income could be at risk while you recover. OAI can help with the financial impact.

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Occupational accident insurance vs. workers’ compensation

It’s important to note that you can’t collect benefits from both workers’ compensation and an occupational accident insurance policy. Here are some of their key differences:²

Legal requirements: Workers’ compensation is typically required by state law for businesses with employees, while OAI is a voluntary policy.
Beneficiaries: Workers’ compensation is intended for businesses with employees, but OAI typically offers benefits for individuals who are not covered by a workers’ comp policy.
Liability: Workers’ compensation usually includes liability coverage for the employer, while OAI does not.
Cost: Workers’ compensation typically has mandatory coverage requirements, which can make it more expensive than less comprehensive OAI policies.

Occupational accident insurance vs. accident insurance for individuals

You may have heard of accident insurance coverage before, so it’s important to distinguish between this type of coverage and occupational accident insurance. The two serve similar purposes but function differently. Accident insurance can offer protection for both injuries at work and outside of work. Aflac offers accident insurance for individuals and families that help provide protection beyond the workplace in the event you’re hurt and miss work.

Learn more about accident insurance

Occupational accident insurance can help provide added peace of mind and financial protection for independent contractors and other workers ineligible for workers’ compensation. Aflac offers supplemental accident insurance for individuals and families that can help provide benefits to help with accidents outside the workplace. Chat with an agent today to learn more about accident insurance and get a quote.

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