The Facts About Occupational Accident Insurance
The risk of sustaining a serious injury or even death exists in every work environment. Many workers are covered by workers' compensation insurance. This type of insurance will provide financial benefits whenever an employee is unable to work as a result of an injury.
Not all of the working public is protected by workers' compensation insurance. Fortunately, there is another insurance product that can help fill the gap for those workers who don't have access to workers' compensation insurance. This product is referred to as occupational accident insurance.
What Is Occupational Accident Insurance?
To understand the value of occupational accident insurance, you must be familiar with how these policies work. The function of occupational accident insurance is very similar to workers' compensation insurance.
Employers pay monthly premiums, which are deposited into a specialized insurance fund. Should an employee who isn't eligible for workers' compensation benefits sustain an injury while on the job, a claim can be made against the occupational accident insurance fund.
Who Is Responsible for Occupational Accident Insurance?
It is generally the responsibility of individual employers to obtain an occupational accident insurance policy. Unlike workers' compensation, which is governed by law, there are no minimum limits required for occupational accident coverage. This means that employers can choose to have a high level of coverage or no coverage at all.
The premiums associated with occupational accident insurance tend to be more affordable than the premiums paid for workers' compensation insurance. This can help motivate employers who have workers that are not eligible for workers' compensation benefits to invest in occupational accident coverage.
Who Benefits From Occupational Accident Insurance?
The benefits of occupational accident coverage are plentiful. Employers can benefit from this type of insurance by avoiding serious lawsuits. Anyone injured while working could file a lawsuit against their employer. If the plaintiff isn't eligible for workers' compensation benefits, an employer may have to cover the cost of medical care personally. Occupational accident insurance acts as a buffer against this type of financial loss.
Independent contractors, temporary workers, or seasonal employees can benefit greatly from occupation accident coverage. These workers are not eligible for workers' compensation benefits if they become injured while working.
Financial assistance can be offered through an occupational accident policy instead of a workers' compensation fund if the employer has the right policy in place.
Occupational accident insurance plays a critical role in protecting both employers and their workers against financial damage in the event of a serious workplace accident.