Understanding the insurance coverage your business needs can be confusing, especially in the case of occupational accident vs workers compensation. Both can cover expenses related to workplace accidents, but each has unique pros and cons.
What Are the Advantages of Occupational Accident Insurance?
Occupational accident insurance can apply to independent contractors who are not employees. It is also significantly cheaper than worker’s compensation plans, and in certain states, you can opt-out of worker’s compensation in favor of an occupational accident plan. If your business doesn’t involve significant risk of injury, one of these plans may be a better choice.
However, insurance professionals advise caution when opting for occupational accident vs workers compensation. While an occupation accident plan can be a good supplement, worker’s compensation has key benefits for your business.
What Are the Advantages of Workers’ Compensation?
A disadvantage to occupational accident insurance is that, in court, your company will assume the burden of proof in cases involving these policies. In worker’s compensation cases, this burden of proof shifts to the employee.
Worker’s compensation plans will also cover legal fees, which can quickly negate any savings from a lower-cost occupational accident plan. Since worker’s compensation plans are state-regulated, you can be sure they will meet legal minimum requirements.
When weighing occupational accident vs workers compensation, be sure to consider both the risks and the needs of your business.
