Occupational Accident Insurance Quick Overview
If you are an independent contractor, you aren't covered under an employer's workers compensation insurance. This can put you at considerable risk if you sustain an injury on the job. Consider occupational accident insurance to stay protected while working.
What is Occupational Accident Insurance?
Occupational insurance covers you when you experience an accident at work that isn't covered by workers compensation. This includes independent contractors, such as 1099 employers.
The coverage pays for personal injury, death, and disease as well as acts of violence that take place on a job site or workplace.
Some Occupational Accident Statistics to Be Aware of
According to the International Labor Organization, here are some statistics you need to be aware of:
- 160 million illnesses that are work-related happen every single year.
- 340 million injuries are work-related and happen every year.
- Every year, 2.3 million people die due to such injuries or illnesses.
Is Occupational Accident Insurance Something You Need?
Workers compensation policy will automatically offer all benefits that are mandated by the workers compensation law of the state. Policies do not offer many choices.
However, when opting out of the workers compensation program, you automatically assume liability. There are many large employers that can self-insure against fatalities, illnesses and injuries. Others just have protection against limited losses.
With occupational accident insurance, you cover different areas, like:
- An amount of money available to pay the medical benefits that come from an accident.
- Disability benefits – available for a period of time when an employee becomes disabled while working.
- Dismemberment and accidental death benefits. Limits apply.
It is also possible that there are policies that combine a limit. A lump sum becomes available. This can cover all areas mentioned. No matter the case, policies include per-accident deductibles and annual maximum amounts.
In businesses, installing a really good insurance program is not easy. You need to work with a good insurance agent that helps compare rates and options. They need to come from different companies so you find the lowest costs and the very best programs.
What is the Coverage and Who's at Risk?
Occupational accident insurance fills a gap in coverage for business owners. It covers medical expenses, death benefits, lost wages, and some legal fees.
Of course, different policies have varying limits. Employers can review options with their insurance companies to pick the best options for the type of business activities covered. Independent contractors should ask whether they have enough coverage.
Independent contractors should ask whether they have coverage under an accident insurance policy. This is especially true in high-risk occupations, such as trucking, labor-based contracting and electrical and plumbing work.
Contractors Can Purchase Work Injury Insurance
Many independent contractors would benefit from occupational accident insurance. Truckers are often owner-operators instead of 1099 contractors or traditional employees of companies they drive for.
Trucking companies and other employers that use freelancers sometimes offer occupational insurance to contractors. This helps with recruitment in many companies and can reduce employer liability.
Many workers prefer to have their own insurance so that they can choose the coverage that appeals to them and that best covers them in the event of injury.
Employers use occupational accident coverage to promote worker benefits and rights and to prevent lawsuits. As a contractor, you can take advantage of the coverage.
Stay Prepared
Being an independent contractor gives you a lot of control over your work life. However, it comes with risks. Generally. accidental life insurance can alleviate some of the concerns you may have in having to carry your own health insurance.
Consider the Type of Legal Representation You May Need
If you have an injury from an accident or work in a job where that's likely, consider not only what insurance you need, but also what legal representation works for you.
Nobody likes to think about serious injury or having to go to court, but the better prepared you are, the easier it will be to get through a difficult process.
One of the benefits of occupational accident insurance is that it's often cheaper than workers compensation insurance. It's a great tool to protect both employers and employees from unforeseen accidents.
As such, it can be a win-win for independent contractors and companies in a variety of fields. It allows everyone to enjoy peace of mind and concentrate on keeping business operating smoothly.
Contingent Liability Coverage
Occupational accident insurance sometimes includes contingent liability coverage. This protects the trucking company in the event that owner-operators initiate actions as an employee, as opposed to independent contractors.
Such a policy covers legal costs. In particular, it compensates benefit costs beyond what is included in the occupational accident insurance policy.
There are often problems between the status of an independent contractor and employee. The laws that govern such terminology vary a lot from one state to the next. Trucking company owners that have occupational accident policies in place protect employers and contractors more.
Conclusions
Occupational accident insurance is something that helps every single person that works in a dangerous environment. It even protects for unexpected workplace accidents that happen due to negligence or literally anything else.
Unfortunately, employers rarely cover independent contractors. They need occupational accident insurance policies. You need to see exactly what the employer offers. Usually, in the event that you need more coverage, take on independent insurance.
Do not work without proper health insurance in place! This only causes unexpected problems.
