Understanding the Difference Between Workers’ Compensation and Occupational Accident Insurance
Every year, industries lose billions of dollars due to work-related injuries. To help reduce the strain of the costs, most businesses carry either workers’ compensation or occupational accident insurance. On their face, these two insurances may look similar. However, there are some important differences that you need to be aware of.
What Is Workers’ Compensation?
The state often administers workers’ compensation insurance. This program provides payment for lost wages and medical expenses if an employee suffers an injury while carrying out a work-related duty. Workers’ compensation will also cover medical expenses that occur years following the accident.
What Is Occupational Accident Insurance?
Occupational accident insurance protects the employee and employer. With occupational accident insurance, you can choose the coverage amount and the deductibles that go along with your plan. The plans cover medical expenses and lost wages but only up to the policy limit.
Most employers choose an occupational accident insurance plan because it is more cost-effective than other workers’ compensation plans. It also provides you with more control and flexibility than workers’ compensation plans.
When it comes to your business, you need to be prepared for workplace injuries. Most industries have some form of risk. If you do not have some form of insurance, your employees could file a lawsuit against the company after suffering an injury.