What’s the difference between Occupational Accident Insurance and Worker’s Compensation?

Commercial Truck Insurance

What is Workers Compensation?

Workers Comp is a state-regulated and state-mandated insurance which covers costs associated with a worker’s injury on the job. This can include medical bills, lost wages, legal fees, and ongoing care after an injury. It’s the employee’s responsibility to submit a claim for coverage, which may be done at the time of the accident or after the fact. Each state has different laws surrounding Workers Comp limits and qualifying factors.

Employers are typically required to carry a Workers Comp policy if they have a certain number of employees or if the employees work more than a certain number of hours per week- laws vary by state. Workers Compensation policies are more expensive than Occ/Acc, since the coverage limit is determined by state laws and not the employer’s discretion.

What is Occupational Accident Insurance?

Occupational Accident insurance provides more limited coverage than Workers Comp, and therefore is less expensive than Workers Comp. Occ/Acc covers medical bills, lost wages, and death benefits when a worker is injured on the job. Policy holders are able to select the amount of coverage they want based on perceived risk.

Occ/Acc can bridge the gap between full-time employees covered under a state’s Workers Comp laws, and owner-operators leased on to motor carriers. Owner-operators are considered to be independent contractors and are therefore not covered by most Workers Comp laws. They do, however, have the right to pursue legal action in the case of an injury. Selecting an Occ/Acc policy with sufficient coverage helps to protect trucking companies against legal action, but will not cover associated legal fees like Workers Comp would.

When deciding which policy is right for you, consider the following questions:

  • Are your workers full-time employees or independent contractors?

  • How expensive is Workers Comp in your state?

  • Does your state allow you to provide either Workers Comp coverage or Occ/Acc? Which option would be less expensive?

  • Does the lower cost of Occ/Acc outweigh the potential legal costs of a lawsuit?

As always, the agents at Insure My Rig are available to help you determine which policy will provide the best coverage for your insurance needs. Make sure you get the best policy for the best price- contact us today!