What it is
Occupational accident insurance pays scheduled benefits when an independent contractor is injured or killed in a work-related accident. Typical benefits include medical expenses, temporary disability payments, and accidental death and dismemberment amounts, each up to the limits in the policy. It is not workers comp and does not follow a state's comp benefit schedule.
Why carriers ask for it
Many motor carriers require owner-operators to carry occupational accident coverage, either through a carrier-sponsored program or a plan the driver buys. It gives the injured driver a source of benefits and reduces the chance of disputes about whether the driver was really an employee.
What to compare
- Medical limit per accident
- Weekly disability benefit and how long it lasts
- Waiting period before disability payments start
- Death and dismemberment benefits
- Whether it covers illness or only accidents
- Exclusions such as pre-existing conditions
Workers comp as an alternative
Some owner-operators form a business and buy workers comp for themselves, particularly if a state or customer requires it. Whether that is possible and sensible depends on state law. Ask the agent to compare both approaches.
Beneficiaries and claims
Name a beneficiary for death benefits and keep the information current. If you are hurt, report the accident to the plan administrator and your carrier promptly; late notice can delay or complicate benefits. Keep medical records and receipts, and ask what documentation the plan requires for disability payments.
Frequently asked questions
Is occupational accident required by law?
Generally no, but many carriers require it in their lease agreements.
Does it cover me on a day off?
Many plans cover only work-related accidents. Some offer optional off-duty coverage. Check the plan.