Why occupational accident insurance policies are inferior to workers’ comp.
We are concluding our series of blog posts on the gig economy with a critique of occupational accident insurance. This is in response to Uber’s pilot program allowing drivers to purchase their own coverage for on-the-job injuries.
Uber is offering this option because independent contractors do not qualify for workers’ comp. It has been reported that up to $1 million for medical expenses, up to half of a driver’s average weekly earnings, and a maximum of $150,000 in survivor benefits will be offered. Here is why occupational accident insurance is no substitute.
$1 million dollars sounds like a lot of money for medical care. But if you are in a serious workplace accident, costs quickly spiral out of control. A hospital stay can cost hundreds of thousands of dollars. 24/7 attendant care or a nursing home might not be covered and can bankrupt a family. Even prescription medications can cost six figures over a person’s lifetime. Michigan workers’ comp pays 100% of medical costs without co-pays or deductibles. It is an unlimited and lifetime benefit.
Wage Loss Benefits
Occupational accident insurance is limited in amount and duration of wage loss benefits. Most people live paycheck to paycheck and loss of income can be devastating. Michigan workers’ comp pays 80% of the after-tax average weekly wage. This includes bonuses, premium pay, and overtime. Individuals can also include lost wages from a second job. Payments continue for the entire length of disability.
Occupational accident insurance policies are typically governed by contract law. Individuals who are denied these benefits might find themselves stuck in federal court with a difficult review standard. Michigan has an entire court system devoted to resolving workers’ comp disputes in a timely and efficient manner. Magistrates are experts in medicine and statutory law.
Michigan Workers Comp Lawyers never charges a fee to evaluate a potential case. Our law firm has represented injured and disabled workers exclusively for more than 35 years. Call (844) 201-9497 for a free consultation today.
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