Alternatives to Workers Comp Coverage

For those who employ independent contractors or employees who are ineligible for full workers compensation benefits, an occupational accident insurance policy can keep you compliant with state regulations. Many states require a certain level of financial protection for employees who are injured or exposed to diseases while performing their job duties. While companies can rely on standard workers comp policies to address these concerns, occupational insurance is an alternative source of coverage.

If your company is smaller and you need to control your expenses, this insurance policy may be a sound investment. This coverage is often much cheaper than workers comp premiums, as it allows the employer to determine the limits and deductibles for each incident involving their employees. While this a short-term solution to a budget issue, there are disadvantages to this approach.

The employer has the burden of proof in a lawsuit.

Employees can sue for suffering, pain or punitive damages after an incident.

Employers are responsible for covering excess expense costs beyond coverage limits.

Occupation accident insurance is a great way to offer employees the required benefits without wasting funds on excessive policy coverage. However, a company should carefully weigh its risks and exposures before deciding between this and a workers comp policy. Consult your insurance agent for a more complete assessment of your company’s liabilities.