It’s said we could expect over half of the workforce to be independent contractors within the next decade. Yet when it comes to workplace safety, employers and insurance brokers still use only workers’ compensation to cover this workforce.

But did you know that there’s a better choice to cover your contract workforce against accidents and injury? One that is specifically designed for independent workers, not only easier to underwrite but more effective and considerably more cost effective: Occupational Accident Insurance.

Though traditionally used in the trucking industry, Occupational Accident Insurance, or OAI, has been available as coverage for independent contractors and 1099s since 2018. Hailed for it's versatility, the usage-based coverage to be purchased by the hour, by the day or by the gig with costs and control offset directly to the contractor.

Introducing Occupational Accident Insurance

Workers' compensation can be expensive for employers, especially for those in high-risk industries or with a history of claims. Premiums are often based on payroll and claims history, making it a significant operational expense. Moreover, navigating complex regulations and administrative processes can be burdensome for both employers and insurance brokers.

Occupational Accident Insurance offers a flexible and cost-effective alternative to traditional workers' compensation coverage. Tailored to meet the specific needs of employers, occupational accident insurance provides coverage for work-related injuries and accidents. Unlike workers' compensation, it operates under an accident-only model, covering medical expenses, disability benefits, and accidental death benefits.

Advantages of OAI

  1. Customizable: One of the primary advantages of occupational accident insurance is its customizable nature. Employers can tailor coverage limits, deductibles, and benefits to align with their risk tolerance and budgetary constraints. They can also designate to pay by the hour, by the day, or by the gig depending on what’s best for their business.
  2. Favorable terms: The simplified underwriting process and competitive pricing make it easier to secure coverage for companies who deal with higher risk contractors or lack the business tenure that workers’ comp demands. Plus the cost is offset directly to the contractors, saving the company thousands of dollars in workers’ compensation expenses.
  3. Less administrative burden: Occupational accident insurance typically offers streamlined claims processing and responsive customer service, easing administrative burdens for employers. And payment is taken directly out of the contractor payout, putting the ownership of maintaining the insurance on the contractor rather than the business.

Worker's Compensation vs Occupational Accident Insurance

By understanding the differences and benefits of Occupational Accident Insurance, brokers and businesses can better serve their contract workforce, offering tailored solutions that meet their unique needs and budgetary considerations.

Interested in learning more? Schedule a call with our team to see if OAI can save your business money.