What’s the Difference Between Workers Compensation and Occupational Accident Insurance?

Photo of injury in the workplace

In the event of injury in the work place, workers compensation and occupational accident insurance both give a level of protection to employees. It’s important to understand the difference between the two, since it will be up to the employer to decide which insurance they will be purchasing to protect their company.

Workers Compensation

This is a state-regulated requirement for employers with a minimum number of employees. Workers compensation covers the cost of lost wages, medical treatment, and rehabilitation for employees who are injured at work. Workers compensation also offers some protection to employers against employees who may sue in relation to their claim. Even if coverage is offered to both parties via workers compensation, employers are still required to provide and maintain a safe workplace to their employees. Workers compensation is the more expensive policy for employers to purchase, but offers more benefits than those found in occupational accident insurance.

Occupational Accident Insurance

This policy is designed to give benefits to independent contractors and employees not covered under workers compensation. Unlike workers compensation, occupational accident insurance is not state-regulated, but it does cover medical costs, lost wages, and rehabilitation. However, these costs are only covered up to policy limits. It will be up to the employer to choose their coverage deductible amounts as well. These are set dependent on the employer’s perceived risk. Occupational accident insurance is the cheaper option and employers on a budget usually opt to purchase it over workers compensation.

If you are an employer and you’re not sure which option is best for your business, contact an experienced workers compensation attorney to give a detailed explanation of both options as well as how unique state laws might come into play. If you’re an employee who has been injured at work, schedule a call with the McArthur Law Firm today. We’ve got years of experience handling workers compensation claims.



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