Workers comp insurance is a policy for medical as well as wage replacement to employees. On the other hand, occupational accident insurance is renowned for providing a similar kind of insurance coverage, but it covers only independent employees and contractors who are not covered under compensation insurance for workers.
Occupational Accident Insurance
This kind of insurance usually does not provide quite some coverage of accidents and injuries while a person works. This type of coverage is optional, and it costs 50% less compared to the compensation for workers insurance. It is most suitable for companies, which may not need all the comprehensive coverage that the compensation insurance offers.
Occupational accident insurance covers medical expenses, lost wages and covers death benefits up to the policy limits. Business owners have a right to choose between disability coverage and deductible limits. This type of insurance usually provides little or nothing at all for the legal expenses. It is crucial for business owners to understand that since the policy does not include the defense costs at all, they are therefore assuming a significant financial risk.
It is essential for you as a business owner to understand that you are responsible for any possible risks likely to happen to your employee and not covered in the insurance policy. In this case scenario, you might likely incur more lawsuit losses than you thought.
Workers’ Compensation Insurance explained
Workers compensation insurance California is an insurance policy suitable for most business owners. You do not need to gamble with any risk that can likely occur to your business. A poorly structured insurance coverage means that your business can collapse any time when subjected to a threat that is not covered by your insurance policy.
The state usually regulates this insurance policy and usually caters for all the medical expenses as well as paying certainly lost wages.
Their payouts cover any injury to the worker or any case of death, they usually meet at least the minimum requirements and they at times even exceed the policy limits.
In this type of policies, the burden of proof usually lies with the employee and not the employer, and therefore the employee has to prove beyond reasonable doubt that the injury or sickness in question caused the condition.
Since the policy coverage provides reliable protection, there are lower chances that your business will face any possible lawsuit losses, and in case such a scenario occurs you have coverage for a paid defense.
Choosing the most appropriate insurance requires one to seek the right information channels as well as responsible parties.
Strong Tie Insurance is a leading force in ensuring that you settle for the best type of insurance for your business. They offer quality advisory services as well as providing you with the best policy options for your business.
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