Choosing the Right Coverage: Occupational Accident Insurance, Workers’ Compensation, and GigEasy’s WorkSAFE Bundle
Still covering your contractors with Workers’ Compensation? That may not be your best option.
Most agents aren’t aware that there’s any choice beyond tradition Workers Compensation to cover employees against accidents and injuries on the job - let alone a suite of solutions to meet their needs.
Let’s break down three key types of insurance to help you make the best choice
Workers’ Compensation Insurance
Workers' Compensation is a legally required insurance that most employers must carry. It features comprehensive coverage in case of on-the-job accident and injuries including medical expenses, lost wages, and rehabilitation costs for those injured.
Pros: Workers' comp covers a wide range of benefits, including medical expenses, lost wages, disability benefits and legal protection. And is compliant with every state regulation in the US.
Cons: It is designed for traditional salaried employees, and may not cover independent contractors or gig workers, depending on state regulations. Workers’ Comp applies a “highest risk class covers all approach” making the cost disproportionate to the worker composition.
Occupational Accident Insurance
Occupational Accident Insurance is designed for businesses that hire independent contractors and may not need or want the comprehensive coverage of workers’ compensation. This type of insurance provides coverage for accidental injuries that occur on the job, including medical expenses, lost wages, and death benefits. It’s generally more flexible and less expensive than workers’ compensation but does not offer the same level comprehensive benefits.
Pros: OAI is highly customizable with coverage, deductibles, limits and pay-as-you-go metrics, making premiums much more cost effective. It can be offset directly from the contractor’s payouts. And it segments risk pools, reducing the “one risk class covers all” challenge with Workers’ Comp.
Cons: OAI does not typically provide protection against lawsuits from contractors. And OAI does not serve as a replacement for state mandated Workers Compensation.
GigEasy’s WorkSAFE Bundle
The WorkSAFE Bundle is our proprietary insurance package, ideal for a blended workforce. This package bundles Occupational Accident Insurance, Workers Compensation, Contingent Liability Coverage to ensure that businesses provide the right coverage for both their salaried and contract employees, with added protection against noncompliance claims. Additionally, the WorkSAFE Bundle also allows business to segment their risk pool to minimize excess coverage.
Pros: Blends the benefits of OAI and Workers Comp with additional legal coverage against misclassification - and for a fraction of the cost of Workers Compensation. Segments contractors from salaried employees for better cost management and control over coverage.
Cons: The WorkSAFE Bundle is not available in monopolistic states.
At GigEasy, we're committed to making insurance accessible and affordable for all types of businesses - from 100% salaried to 100% contractors, and all ranges in between. If you work with independent contractors or gig workers, let GigEasy find the right solution for you. Learn more about our coverage options and get started today!
For more details, visit our Commercial Insurance page. Or set up a call with our team to see what coverage is right for you.
