🛡️ What is Occupational Accident Insurance?
Occupational Accident Insurance (OAI) is a type of coverage designed to protect independent contractors and 1099 workers (aka folks who aren’t covered by traditional workers’ comp). It pays out benefits if they’re injured or killed while performing work-related duties.
It usually includes:
- 💥 Accident medical expenses (doctor visits, hospital bills, rehab)
- 🛌 Disability benefits (lost wages if you can’t work)
- ⚰️ Accidental death & dismemberment (AD&D)
- 🏥 Optional: Temporary total disability, residual disability, or survivor benefits
Think of it like DIY workers’ comp — built for people not on payroll.
👷♀️ Who Needs Occupational Accident Insurance?
🔹 1. 1099 Independent Contractors
- Truck drivers, couriers, ride-share drivers
- Freelance construction workers
- Temp laborers
- Field sales reps
➡️ If you work for a company but not at the company, OAI is probably for you.
🔹 2. Owner-Operators in Transportation
- Especially in trucking, companies often require OAI before they’ll even let you haul loads under their authority.
- It’s often part of a lease agreement with motor carriers.
🔹 3. Employers Who Hire 1099s
- Some businesses offer it as a way to reduce legal risk without committing to full workers’ comp.
⚠️ Important: Occupational Accident does NOT provide the same legal protection as workers’ comp. If a 1099 sues you, OAI doesn’t shield your business from liability unless bundled with employer liability protection.
🧾 What Does It Cost?
- Typically cheaper than workers’ comp
- For a single 1099 contractor, policies can range from $60 to $200/month
- Costs depend on industry risk, coverage limits, and benefit periods
Next:
If you’re an independent contractor doing physical work — especially in trucking, construction, or delivery — and you want coverage for on-the-job injuries but don’t qualify for workers’ comp… Occupational Accident Insurance is your safety net.
Want to see sample pricing or compare it to workers’ comp for your industry? Just say the word.
