Occupational Accident Insurance

Occupational accident insurance covers individuals not elgible for coverage under worker's comp insurance, for accidents related to the performance of their occupation.  In the area where I see most of these policies issued, owner operators in the trucking industry, the insurance policies are tailored for the occupation and rated as high risk or low risk depending on the type of freight hauled.  For example, drivers who pull only dry vans are at lower risks of sustaining an injury that will keep the driver from working than say a driver who pulls flat beds, where a higher risks exists for injuries that will prevent the driver from working. Based on this, some companies group these risks categories and offer the better rate to the lower risk group.

 

It wasn't always this way. For years there was one Occupational Accident policy and all drivers paid the same rate or a rate based on the number of drivers enrolled through a specific policy. So a company with a large pool of drivers that were owner operators received a rate based on the company's loss ratio. Few companies received this treatment and most drivers paid a rate based on an individual policy rate set by the various insurance companies.

 

Recently, policies have become available to individuals at better rates by combining individual drivers and policy holders into industry groups, similar to a Co-op system.  An example of this set up is found at http://www.premiumowneroperators.com .  The insurance company forms groups comprised of individual drivers or small groups into a larger group and makes available the group rate to the individual.  The driver receives a less expensive insurance premium, and the insurance company has its risks reduced by applying group loss rates.  Stated simply, the loss is distrbuted over a group, same principle that governs all insurance. 

 

Occupational accident insurance covers accidents that are related to the performance of the job. For an owner operator that often includes injuries sustained while maintaining his truck. The more obvious covered injuries are loading and unloading accidents that result in injury.  Falls resulting from climbing onto the rig when it is icy or wet, or falling out of the rig, off the trailer and et cetera, are usually covered.

 

Coverages provide a means for drivers to contnue to meet their obligations while off of work due to the covered accident.  An owner operator is a business in and of himself, if he doesn't run, his business doesn't either and that is what Occupational Accident insurance is designed to offset, the losses suffered by being unable to perform work while you recover. 

 

Being less expensive than worker comp, many companies try to substitute occupational accident coverage for what is legally required.  The states set the criteria for who is elgible for Worker Comp, and who must carry this coverage.  I have seen companies running 135 trucks carry occ accident in lieu of state mandated comp, the State came in and put a stop to that, and I am sure a hefty fine came along with that discovery. Occupational Accident is not Worker Comp, and should never be substituted if the policy is not approved as a legal substitute.

 

For more information on this topic you can check out the occupational accident page at http://www.premiumowneroperators.com/links/occupationalaccident.htm .