Occupational Accident Insurance vs. Workers Compensation Insurance… should a 1099 independent contractor have Occupational Accident?
Workers Compensation and Occupational Accident are two distinct types of coverage, although they both relate to workplace accidents or injuries. A quick chart helps identify similarities and differences.
| Workers’ Compensation | Occupational Accident |
| Covers employees | Covers independent contractors |
| Provides coverage for an accidental injury in the course of work or work-related illness | Provides coverage for an accidental injury in the course of work |
| Mandatory in most states | Not typically mandated by law |
| Benefits and limits specified by state law | Flexible options for benefits and limits |
| Employer pays the policy premium | Options allow contractors or company to pay premium |
Should independent contractors have Occupational Accident Insurance? Absolutely. Without it these 1099 independent contractors may not have any coverage for an on-the-job injury. Occupational Accident Insurance can provide peace of mind. If an independent contractor is injured while working, Occupational Accident Insurance can provide coverage for medical expenses, payments to their family, and replacing lost income.
Help prepare your clients from financial exposure and recommend Occupational Accident Insurance for their 1099 workers.
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