Offering Coverage for Independent Contractors

Traditional workers’ compensation or general liability insurance is not the most comprehensive in today’s gig economy. Many laborers are contracted and paid by the job rather than provided an hourly wage and set schedule, causally referring to these arrangements as a gig. In addition to non-traditional employment contracts, multiple online platforms can be used to host service exchanges, creating new challenges in the employment relationship. For these companies, an investment into gig insurance may be wise.

Accident Insurance

Because most contracts for job-specific services are considered independent contract work, employers are often exempt from providing workers’ compensation and other benefits required of traditional employment relationships. A general liability policy only offers coverage with damages to property or equipment. Third-party concerns are not protected.

Occupational accident insurance (OAI) is a policy that will fill in the gaps when workplace accidents or incidence related to contracted employees occur. Although not required by state regulations, OAI is regularly chosen by companies such as manufacturing facilities, courier services or trucking agencies to provide coverage to their independent contractors, as it ultimately protects their company assets and investments.

Insurance Benefits

Apart from financially protecting a company in the event of liability claims, gig insurance benefits may include:

  • Medical costs resulting from workplace injuries
  • Accidental death
  • Temporary or permanent disability

An experienced provider will evaluate your company’s services and potential risks, and recommend a gig insurance policy that comprehensively covers both you and your employees.