Covering Your Independent Contractors

As a business owner, you probably have concerns about the financial costs of insurance premiums or incidents involving your employees. There are usually state regulations concerning the benefits and compensation employees can expect, and most often these are met through workers’ compensation plans. If your business relies on subcontracted employees to complete jobs, you may be better served by an occupational accident insurance policy (OAI), which can often meet state requirements.

Who Needs It?

An OAI policy offers coverage to independent contractors or employees not covered by a workers’ compensation policy. Occupational accidents are considered any unplanned or unexpected incidents which result in personal injury or death. Incidents could be caused by working conditions or acts of violence. There are many industries which rely on independent contractors:

  • Construction
  • Plumbing
  • Electrical
  • Staffing agencies
  • Virtual/Remote employment
  • Trucking/transportation companies

What Can it Provide?

Having an OAI policy is almost the same as workers’ compensations insurance, except that a workers’ comp policy has standard coverage. OAI coverage allows you to select what coverage you want. You will have to decide what amount to set for medical benefits, accidental death and dismemberment limits for employees and the amount of disability coverage.

Occupational accident insurance is a smart choice for those who employ independent contractors. It will protect them from liability concerns and be compliant with state regulations.

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