Choosing Between Occupational Accident Insurance and Workers Compensation Insurance

“Workers compensation” is a term that just about everyone knows, and it’s common for businesses to carry insurance to cover such costs in the event that something happens to one of their employees on their watch. 

However, there is another kind of insurance coverage that is similar to (but different than) workers compensation insurance: occupation accident insurance. This type of insurance is also a worthy consideration for businesses that want to protect against unexpected costs related to accident liability. 

Which Coverage Is Right for Your Business? 

Deciding which of these coverages is right for your business requires understanding the difference between the two. While workers compensation insurance is coverage specifically for employees of a business, occupational accident insurance is coverage for contractors hired by a business. 

On a basic level, then, if your business does a lot of contracting and is less employee-oriented, the latter option may be better for your situation. But if it’s set up with primarily full-time employees (especially in a setting that can be dangerous), the former option is probably preferred. 

Another consideration when thinking through occupational accident vs workers compensation insurance is the laws of the state you are in. Some states have restrictions in place that keep a business from using occupational accident insurance to cover costs that are normally associated with workers compensation cases. 

Regardless of what kind of insurance your business decides to go with, making a decision and obtaining coverage of either kind can help to strengthen and protect your business financially.