Every employer should provide workers with financial protection against workplace accidents that result in medical bills and lost wages. Most people are familiar with workers’ comp for this coverage. Here are some things employers should know about a similar coverage type called occupational accident insurance.
What Is Occupational Accident Insurance?
Like workers’ comp, occupational accident insurance (OAI) covers medical bills and lost wages for both employees and employers in case of an injury. However, OAI only covers up to the policy limits. While this often makes it cheaper than buying workers’ comp insurance, there is one considerable downside to this type of insurance.
Who Pays for What Occupational Accident Policies Don’t Cover?
If an injured employee’s medical costs and lost wages exceed the OAI plan coverage limits, the employer is responsible for the remaining costs. Additionally, the employee could potentially sue the employer. Therefore, an employer providing OAI to employees may need to pay for additional liability insurance.
While occupational accident coverage may be more affordable than workers’ comp, it could cost an employer more in the long run if an employee sustains a severe and costly injury. Employers must carefully weigh all options and costs before choosing a type of coverage.
