Occupational accident coverage pays medical expenses, disability benefits, and death benefits to independent contractor drivers injured while working. Benefits are contractual and typically capped, unlike statutory workers' compensation.
Carriers frequently require owner-operators to carry it.
Alternative Names:
Occ Acc Coverage, Occupational Accident Insurance
Why it Matters?
This coverage exists because independent contractor status removes drivers from the workers' compensation system, and it becomes contested when a driver classified as a contractor argues they were an employee entitled to statutory benefits. That reclassification fight has real consequences: workers' compensation provides unlimited medical and statutory disability, while occupational accident benefits are capped. It also affects whether the exclusive remedy bar applies.
Frequently Confused with
Related terms
Frequently asked questions
How does occupational accident coverage differ from workers' compensation?
What happens if the driver is reclassified as an employee?
