What You Should Know About Occupational Injury Coverage

State and federal government agencies require that employers provide some form of compensation in the event of employee injury occurring during the course of the workday. For the most part, workers’ compensation insurance is a go-to for providing medical benefits and wage replacement to employees. However, not all employers can be covered under a workers’ comp program, and occupational accident insurance can be used as a substitute.

Coverage Against Your Risks

There are many factors that determine how much insurance coverage to purchase, but one key component in employee injury coverage is any applicable state laws. Once you have determined the minimum requirements of coverage, the next consideration should be the risks your employees face and the risks you are willing to assume as a company. This insurance is much cheaper than workers’ comp coverage and covers similar things like medical expenses, lost wages and death benefits.

While an added benefit of occupational injury insurance is the ability of the company to choose the disability coverage, policy limits and set the deductible, these policies rarely provide the expenses needed to address legal risks and obligations. Business owners assume the financial risk of defense costs and potential settlement decrees when they choose occupation accident over workers’ comp.

Though a cost-effective policy when compared to workers’ comp, an occupational injury policy could lead to larger financial costs through significant lawsuit losses. Fully evaluate your risk before you determine which coverage is best.