Occupational Accident Vs Workers Compensation
Workers’ Compensation insurance and Occupational Accident insurance are two of the primary types of insurance that protect employers and employees from the financial consequences of injuries and accidents on the job. And while these two plans function very similarly, there are important distinctions between how the two respond to different scenarios and as an employer it is important to understand the differences the pros and cons of each to ensure you are properly covered. 
Occupational Accident Pro’s 
- These plans offer the employer the option to control or limit the amount of coverage for employees.
- Occupational Accident plans often have more flexibility than their workers’ comp counterparts, especially for the employer. Plans can include coverage for survivors’ benefits, temporary or permanent disability, or accidental death if the employer so chooses.
Workers’ Compensation Pro’s
- Employee medical expenses and lost wages are paid through the Workers’ Compensation system.
- Benefits are protected by a guarantor or guaranty association.
- Employees hold the burden of proof in a work-related injury lawsuit.
- Except in certain cases, workers cannot win lawsuit judgements for punitive damages or pain/suffering. This significantly reduces liability on the part of the employer.
- Plans are relatively simple – if an employee is injured on the job, coverage can begin almost immediately and without confusion.
Occupational Accident Con’s 
- Under these plans, the employer bears the burden of proof in an injury lawsuit brought by employees.
- Employees can also win judgements for pain/suffering and punitive damages. These judgements may have certain limits. Occupational Accident significantly increases employer liability.
- If the injured employee’s medical and lost wage expenses exceed plan coverage limits, the employer is responsible for covering the remaining costs.
- Legal fees are generally governed by the terms of the Occupational Accident policy.
- Occupational Accident plans and their coverages are vastly more complex than Workers’ Comp plans.
Workers’ Compensation Con’s
- In the past, employer costs are higher than those associated with Occupational Accident plans but the Workers’ Compensation market has streamlined their networks relationships and associated costs closing the pricing gap difference.
Workers’ Compensation premiums and Occupational Accident premiums align for certain industry groups. Ask us for a Workers’ Compensation comparison today. Contact Stephanie Sears at SSears@ib-tx.com or (214) 646-1654.
 U.S. Risk – Breaking Down the Difference Between Occupational Accident Insurance and Workers Compensation: https://www.usrisk.com/2018/05/breaking-down-the-difference-between-occupational-accident-insurance-and-workers-compensation/
IBTX, an Acrisure Agency Partner, specializes in risk management and insurance solutions. Empowered with innovative thinking, our experienced professionals deliver creative solutions to proactively manage risk, mitigate exposure and consequences and minimize financial and human impact. We are among the largest independent brokers in the Southwest with a mission to instill confidence in our clients.
Acrisure is the marketing name of the national group of agencies offering insurance and risk management expertise through Acrisure, LLC and its affiliates. For additional information, please visit our website at https://acrisure.com.The information and descriptions contained herein are provided for general informational purposes only, and should not be viewed as a substitute for legal, regulatory, or other advice on any particular issue or for any particular reason. The advice of a professional should always be obtained before purchasing any insurance product or service, and you should not rely on the information provided herein for the prevention or mitigation of risks or as a full and complete explanation of coverage under any insurance policy. While the information contained herein has been compiled from sources believed to be reliable, no warranty, guarantee, or representation, either expressed or implied, is made as to the correctness or sufficiency of any representation contained herein.
Posted by Nicole Lozano in Blog, Property & Casualty
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