Occupational Accident Insurance Could Be the Answer in the “Gig Economy”

News and Articles

Occupational Accident Insurance Could Be the Answer in the “Gig Economy”

May 24th, 2018.

In some cases, these employer/employee arrangements can lead to significant hurdles when it comes to protecting the assets and liability claims of a business. This type of work organization is often referred to as the “gig economy,” where workers log into an online platform or app to conduct their work and are paid by the hour rather than receiving a regular job wage. In recent years, the workplace in America has undergone a large degree of transformation, with workers being coordinated by employers, staffing management agencies, and online entities. What used to be a fairly straightforward organization of employees and employers has shifted to a large degree.

Worker-Based Insurance.

In the gig economy, many workers are classified as independent contractors, and they are not considered employees by the company. Therefore, they are not afforded the same benefits and insurance coverage as direct employees. However, there is a type of insurance program, usually administered by the state, that is designed to cover the medical expenses and lost wages associated with workplace injuries. This program may be required by local or state law in traditional workplace environments.

General liability insurance (GLI) is designed to protect against claims by third parties and compensate for on-the-job injuries, damages to equipment and buildings in the workplace, and associated liabilities. This insurance is held by staffing companies and covers injuries and damages.

Occupational Accident Insurance, also known as OAI, is a potential solution that provides certain levels of financial protection for both employees and employers in case of workplace accidents and injuries. This specialized type of insurance policy is not often required by law, but it offers important financial safeguards. These plans can cover various types of employees, including those managed by staffing companies, independent contractors, and traditional company employees. OAI is standard in many industries, such as delivery services, manufacturing facilities, and trucking companies, where contractors are used for workplace duties.

Advantages of Occupational Accident Insurance.

Occupational Accident Insurance (OAI) offers multiple benefits to both employees and employers, providing an additional layer of protection. OAI plans generally have lower costs compared to workers’ compensation insurance plans, and they allow employers to set coverage limits for individual employees, including piecework employees or independent contractors.

A typical OAI plan may include advantages that encompass:.

  • Healthcare costs related to work-related accidents.
  • Accidental death.
  • Survivors.
  • Temporary or long-term incapacity.
  • Employees and employers can both enjoy protection against accidental death, injury, and property damage resulting from workplace accidents, through occupational accident insurance policies. To locate policies that meet the specific needs of each company and the configuration of their workplace, a qualified insurance agent can help determine their risk level. While the terms and policies of OAI may be more complex than other types of worker insurance, they offer greater flexibility than many other plans.