Workers’ compensation laws vary between states, but most require coverage if you have a certain number of employees. Occupational accident insurance (OAI) can help provide for employers and employees in the absence of workers’ compensation coverage.
Advantages of Occupational Accident Insurance
One of the biggest advantages of OAI is that it can be customized to meet your specific needs. You get to choose the coverage types and limits. For example, you may choose to offer temporary or permanent disability, accidental death or survivors benefits to employees under an OAI plan. It is also an affordable choice, making it an attractive choice for smaller businesses.
Disadvantages to OAI Coverage
The lower cost of occupational compensation coverage brings some limitations with it that may present as a disadvantage to your business. Examples include:
- Policies will only pay up to a set amount.
- There may be a lag between a claim being filed and any benefits being provided.
- The burden of proof falls to you as the employer when a claim is made.
- Employer liability is much higher than under a workers’ compensation plan.
For many small businesses, occupational accident insurance offers affordable coverage for injuries and accidents to workers. Talk to an experienced insurance agent who can help you navigate local requirements and decide if it is the right choice for your business.