When it comes to insurance regarding employees getting hurt on the job, worker’s compensation is the first term that comes to mind. This is for good reason. It is the most common coverage that employers opt for and is required in many states. There is an alternative to this that is allowed in some places and can be applied to contractors or employees not covered by workers comp. It is known as occupational accident insurance and you should know the main differences in these policies.

OAI Highlights

There are many similarities between workers comp and OAI. They both provide a certain level of financial protection for both parties in the case of a work-related injury. OAI provides more flexibility and options for an employer with the result being lower premium costs. However, occupational accident claims come with their own set of risks and these are some of the major distinctions with OAI:

  • It only covers lost wages and medical bills up to the coverage limit.
  • Employers have the burden of proof in any lawsuit.
  • Employees can sue for pain and suffering.
  • Coverage for legal fees is often minimal.

Understanding how workers comp and occupational accident insurance differ can help you make the right decision for your company and workforce. This could help save overall costs. A knowledgeable insurance professional can help explain the pros and cons for your situation.