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/
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