Occupational Accident

What Does Occupational Accident Mean?

An occupational accident refers to an unforeseen event that results in injury or death to an individual while they are at their workplace or engaged in work-related activities. Employers may sometimes choose occupational accident insurance over a workers’ compensation policy because it is more cost-effective.

Insuranceopedia Explains Occupational Accident

Due to the risk of vehicular accidents, individuals in the trucking industry, such as truck operators and trucking companies, often protect themselves against occupational hazards by purchasing occupational accident insurance policies. Many fleet owners pair it with a commercial trucking insurance policy that covers vehicle damage and cargo losses that an occupational accident plan will not pay for.

Other industries prone to such accidents include manufacturing and construction. In the absence of a workers’ compensation policy, employers and employees in these sectors may also opt for occupational accident insurance. Before choosing one over the other, business owners usually look at what a workers compensation policy actually pays out and whether state law requires it for their industry.

Policyholders of an occupational accident insurance plan are typically entitled to the following benefits after a workplace accident: coverage for healthcare expenses, a portion of the annual salary in cases of dismemberment or death, and periodic payments based on a fraction of their regular salary for a specified duration.