What is it?
Occupational accident insurance (OAI) is a type of insurance that protects 1099 workers from financial losses due to job-related injuries. It can help pay for medical expenses, lost wages, and other costs associated with an injury.
OAI is similar to workers' compensation insurance, but there are some key differences. Workers' compensation is a government-mandated insurance program, that employers are required to provide to all W2 employees. OAI is a policy that is typically purchased for by an independent contractor when conducting business as a 1099.
How does it work?
OAI typically covers the following:
Medical expenses: This includes the cost of doctor's visits, hospital stays, surgery, and prescription drugs.
Lost wages: This covers the income that an employee loses if they are unable to work due to an injury.
Death benefits: This provides financial assistance to the family of an employee who dies as a result of a job-related injury.
OAI does not cover the following:
Injuries that are not work-related
Injuries that are caused by the employee's own negligence
Injuries that are caused by the employee's intentional act