Occupational Accident Insurance Cost

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Hundreds of millions of work-related injuries and illnesses occur every year. Additionally, millions of employees die as a result of accidents that occur while they are on the job. Even if the employee is an independent contractor and therefore not covered by workers’ compensation insurance, an employer will want some kind of insurance to help cover medical expenses and provide benefits if they are injured, permanently disabled, or even killed. Occupational accident insurance is the coverage you need to protect yourself from these scenarios. Even though coverage for such workers is often not required by law, the cost of paying for a lawsuit and potential damages out of pocket can destroy your business and even personal finances. You want to give your business the best chance to succeed. Having a comprehensive occupational accident insurance policy is essential to the security of your company.

In this guide, we will provide all the information you need about occupational accident insurance costs. After reading it, you should feel confident to begin your search for the best policy to cover all your needs./p>

We Cover this Guide

  • How much does occupational accident insurance cost?

  • What is occupational accident insurance?

  • What does occupational accident insurance cover/not cover?

  • Benefits and risks

  • Tips for buying

  • Types of insurance you may need

  • FAQ

  • Summary

How Much Does Occupational Accident Insurance Cost?

Occupational accident insurance costs range from $60 to $160 per month depending on your provider, industry, deductible, coverage, limits, number of workers, risks, benefits, payout, and claims history. The biggest factor that will determine your rate is what risks are covered and the amount the policy will pay for an accident and the resulting expenses from illness, injury, disability, or fatality. The greater the benefits provided, the higher your premium price. Since these policies are flexible, you have a lot of control and will have to determine whether it makes sense to pay a little more to cover certain potential risks.

What is Occupational Accident Insurance?

Occupational accident insurance is a type of coverage similar to workers’ compensation insurance, but designed specifically for businesses that work with independent contractors, owner-operators, and subcontractors. While these workers are not your employees, and you are not legally required to obtain insurance to cover them in case of injury or illness, if something happens they may sue you and without coverage, you will be responsible for the legal fees and damages. Occupational accident insurance is an essential policy to protect your business and cover the expenses in case something happens to anyone you hire.

What Does Occupational Accident Insurance Cover/Not Cover?

Unlike workers’ compensation insurance, occupational accident insurance is an extremely flexible policy. That means that you can completely customize your coverage to include whatever benefits you want and need. You just have to consider the risks your work poses to your independent contractors and make sure you and those working for you are protected. The following are some risks and benefits that you should consider including in your policy:

  • Accidental death

  • Survivor’s benefit

  • Non-occupational accident

  • Hernia and hemorrhoid

  • Chiropractic

  • Passenger accident

  • Accidental dismemberment

  • Medical expenses

  • Temporary and permanent disability

Benefits and Risks

Starting and operating a business is complicated and challenging. Lawsuits are complex, time-consuming, and extremely expensive. You want to be able to focus on your company, not worry about what will happen if you get sued and how to defend yourself in court. That is the greatest benefit of occupational accident insurance. If someone you hire gets injured and decides to sue, you have the coverage to protect yourself, handle the legal situation, and cover the damages. That will not only prevent you from having to pay for these things out of pocket, but you will also be spared the concern about what will happen if an accident occurs. Additionally, your independent contractors will feel more secure about working for your company if they know you have adequate coverage.

Tips for Buying

When considering occupational accident insurance cost, you should consider the following tips before making your final decision.

  • You should work with an independent agent. Rates vary between providers and certain companies have more experience with particular fields. An independent agent will be able to direct you to the insurance company with the most experience in your industry and ensure that you get the best coverage at the cheapest rate.

  • Since occupational accident insurance is so flexible, it requires you to make a lot of decisions about exactly what benefits you want to include. An independent agent will help take a look at your business and make sure you are including all the coverage you need.

  • Since premiums vary between providers, you should consider at least three quotes before making your decision. That way you will be confident you got the best rate.

Types of Insurance You May Need

  • General Liability Insurance: Covers third-party bodily injuries, property damage, and other related claims.

  • Commercial Property Insurance: Covers damage, breakdown, and theft of business property, assets, and equipment from covered scenarios.

  • Workers’ Compensation Insurance: Pays for medical expenses, rehab, and lost wages for employees who get sick or injured while on-the-job.

  • Errors & Omissions Insurance (E&O): Protects your business against claims from mistakes and inadequate work.

  • Employment Practices and Liability Insurance (EPLI): Provides coverage against claims of employment-related issues like discrimination, sexual harassment, wrongful termination, and failure to promote.

  • Commercial Auto Insurance: Covers liability for damage and injury from accidents when employees are driving company vehicles.


- What can I do to protect myself in case an injured independent operator claims to be an employee and sues?

Consider contingent liability coverage. It’s a supplemental policy you can add to your occupational accident insurance. It covers the legal costs and damages if someone files such a claim wanting full workers’ compensation benefits.

- What is a BOP?

BOP is an acronym for a business owner policy. It is an insurance package that combines essential coverage for most companies. A common example is general liability and commercial property insurance.

- What is the difference between occupational accident insurance and workers’ compensation insurance?

The main difference between the two is exactly who is covered. Workers’ compensation insurance only includes a company’s employees; while occupational accident insurance applies to independent contractors and other workers not included under workers’ compensation. Additionally, workers’ compensation coverage is mandated by most states and has certain requirements.


After reading this guide, the importance of occupational accident insurance should be extremely clear. If your business involves hiring independent contractors or owner-operators, that does not mean you are off the hook if an accident occurs and they get injured. You can still be sued and the legal costs and damages can be significant. A comprehensive occupational accident insurance policy will cover the expenses and provide essential protection. With the knowledge you now have about occupational accident insurance cost, you can feel confident that whatever policy you choose will be at a good price and provide the necessary coverage.

Typical cost is


Occupational accident insurance cost ranges from $60 to $160 per month depending on your provider, industry, deductible, coverage, limits, number of workers, risks, benefits, payout, and claims history.

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