The GigEasy team loves conferences. Especially when we get to talk about how Occupational Accident Insurance is a better way to cover their independent contractors from on the job accident and injury.

But we were left puzzled with a conversation we had with someone who was convinced Occupational Accident Insurance was fraud. In their view, OAI was performative coverage and would leave contractors without adequate protection in the event of an accident. They said it was better to fully cover all employees with Workers Comp, regardless of their classification.

The GigEasy team was shocked. Because that couldn’t be further from the truth. In fact, Occupation Accident Insurance is the best way to ensure that both your business and independent workers are protected from on the job accidents and injury.

Occupational Accident Insurance versus Workers’ Compensation

We break it down in detail in our other article here.

But the short of it is that Occupational Accident Insurance specifically designed to protect independent contractors and gig workers in the event of injury or accident while on the job. Since it applies directly to the work being done, coverage and payments are designated by the hour, by the day, or by the gig depending on what’s best for the business.

Traditional workers' compensation, however, is designed to cover all workers, at any time, for the entirety of their employment with the company. Coverage is based on payroll and risk pool, applying highest risk to the full company. Workers Comp is legally required for all full time employees, with additional coverage requirements and exemptions mandated by each state.

Dispelling the Myth of Fraud

We get it. Something that sounds too good to be true must have a catch, right? And with opportunity of saving 80% on coverage costs compared to workers comp and improves classification, we expect to get some pushback. But the truth is clear: Occupational Accident Insurance is the right coverage for your independent contractors and gig workers.

True or False: Occupational Accidental Insurance is non-compliant coverage

FALSE (mostly)

Though some states have exceptions,  workers compensation coverage typically only applied to full time and part time W2 employees. So Occupational Accident Insurance is more compliant for independent contractors, gig works and freelancers since it is specifically designed as an accident-only model, covering medical expenses, disability benefits, and accidental death benefits when the injuries occur on the job. Plus, covering independent contractors with workers comp not only creates classification issues, but could be denied if a claim is ever filed due to the nature of their work.

True or False: Occupational Accident Insurance is difficult to manage

FALSE (thanks to us)

It used to be that the administration to manage Occupational Accident Insurance was once a full time job. But our GigEasy Business Portal has made managing OAI for your contract workforce, well, easy. With our new tools, you can manage contract hours worked, segmented risk pools, and payout processing in one place. What’s more, having a portal for contractors creates more distinctive separation between your 1099 employees and W2s - helping to further reduce risk of misclassification.

True or False: Contractors will exploit Occupational Accident Insurance for personal gain

False. (Seriously, so false)

We’re not saying it couldn’t happen. But we have yet to hear a single example where a contractor exploited their OAI coverage for financial gain. However, we do hear stories of contractors dropping their Workers’ Comp coverage after their gig is secured. Though the business was unaware of the gap, they are still responsible for the medical bills and lost wages. And since the contractors own the policies, they can designate a plan that works for their needs and budget, so they can keep the coverage throughout the entirety of their gig.

True or False: You can create segmented risk pools with Occupational Accident Insurance


Workers’ Comp applies a highest-risk-covers-all approach to their underwriting. So if you have 9 day labor contractors and 1 roofing contractor each working ten hours a week, workers comp covers all 10 employees as though they are roofers working full time.

Occupational Accident Insurance, however, covers the individual contractor for the time that they are on the job. This means not only that the coverage can be as short as for an hour, but also that their risk profile reflects the actual work they do. So the coverage is underwritten for 9 day laborer contractors and one roofing contractor, each working ten hours a week.

Reality: OAI Provides Vital Protection to 1099s

In truth, OAI serves as a vital safety net for contractors and the companies that employ them, particularly those in high-risk industries such as construction or transportation. OAI offers essential financial protection for contractors in the event of injuries, disabilities, or even fatalities resulting from work-related incidents.