Occupational Accident vs Workers Comp

In a nutshell, Workers Compensation provides wage replacement and medical benefits to hired employees, whereas Occupational Accident Insurance provides similar benefits, but to independent contractors/owner operators. Which type of coverage is right for you, as a motor carrier, depends on your workforce.

Since Agents of Jet Delivery aren’t technical employees, we would not legally be obligated to pay for your medical, disability, death, or dismemberment benefits in the same way we would with a hired employee. To help ensure you are prepared for any of these worst-case circumstances, before we begin working together we require all Jet Delivery agents, to show proof of Occupational Accident or Workers Comp.

Occupational Accident (Occ/Acc)

Occupational Accident Insurance, which is particularly popular in the world of trucking, doesn’t automatically cover the same statutory limits that workers’ compensation insurance does. Businesses get to choose their limits, deductibles, and the amount of disability coverage they provide, making Occupational Accident a cheaper alternative to Workers’ Compensation.

Workers Compensation

Businesses are required by law to pay for a hired employee’s lost wages and medical bills if that employee is hurt on the job. Most business owners choose to purchase Workers’ Compensation Insurance to cover themselves against situations like these. The payouts from workers’ compensation meet and exceed a jurisdiction’s minimum requirements, and in exchange, an employee relinquishes his right to sue the company. Workers’ comp is designed to protect workers from company negligence as much as it is to protect companies from worker lawsuits.

Know the laws in your State

Some States allow you to cover your workers comp obligations through an occ/acc policy. Some don’t. Almost every State has their own minutia in the wording of your requirements.  Some States, like Texas, have been historically more flexible with allowing occ/acc instead of workers compensation. In California, where workers compensation is largely unaffordable, most motor carriers have to rely on the state fund for coverage. Whether you are from Florida, Illinois or New York, or any where in between, make sure your agent is an expert in your states’ laws and requirements.

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