Management Guide

What’s the Difference Between Occupational Accident Insurance and Workers’ Comp? 

Gigpro pro cleaning their station during service.

If you’re a professional in the hospitality industry picking up gig shifts or a business setting up insurance for employees, it’s crucial to understand the different types of insurance coverage available and how Gig workers are covered. At Gigpro, we only offer Occupation Accident Insurance but in this article, we’ll cover the major differences between Occupational Accident Insurance and Workers’ Comp, as most managers and operations are most familiar with Workers' Comp. While these policies share some similarities, there are key differences that we will identify in this article that make a difference in the kind of protection Pros will receive through OAI while they're working shifts for you.


Workers’ compensation is a state-mandated insurance program designed to provide coverage for employees who become ill or injured while performing their job duties. It typically covers medical expenses, lost wages, rehabilitation costs, and other related expenses. Workers’ compensation is intended to ensure that employees continue to receive support and benefits to get them through the recovery process. Workers’ comp also protects the business. The insurance policy helps protect employers against lawsuits, while still assisting employees. Each state has its own workers’ comp requirements, so make sure you understand what your state will cover. Businesses will typically go through a commercial insurance carrier to pick a policy, but your state’s process may differ. Once the policy is in place, make sure you know your timeline for reporting a claim for any work-related injuries or illnesses.

On the other hand, Occupational Accident Insurance (OAI) is a private insurance policy that specifically focuses on accidental injuries or death that occurs while an employee is working. OAI generally covers medical expenses that result from an accident, including hospital bills, surgeries, medications, and other related costs. However, OAI does not typically provide coverage for lost wages or disability pages, which are often covered by workers’ comp.


In the US, workers’ comp is generally available to all employees, regardless of fault or negligence. It is mandated by state laws to ensure that employees are protected in case of work-related illnesses or injuries. Whether you’re a full-time employee, part-time worker, or seasonal staff, you’re typically covered under workers’ compensation if your employer meets the legal requirements. In the event of an accident, the company may require you to complete a drug test to rule out the possibility of drugs as the cause of the illness or accident.

Occupational Accident Insurance is tailored toward independent contractors and other workers who may not be eligible for workers’ compensation. Gig workers, freelancers, and self-employed individuals are examples of those who might benefit from OAI since they don’t often have coverage from traditional workers’ comp policies. OAI provides a layer of protection for these non-traditional workers who may face unique risks and challenges. For professionals using Gigpro, Occupational Accident Insurance is automatically built-in, so all Pros are covered when working a gig.


Workers’ compensation benefits tend to be more comprehensive when compared to OAI. In addition to covering medical expenses, workers’ comp also provides lost wages during the recovery period. It may also include disability payments for those who experience temporary or permanent impairment that affect their ability to work. In the case of death, workers’ compensation policies may include death benefits, paid out to the family of the employee.

OAI benefits are generally limited to covering medical expenses that result from a work-related accident. This coverage can be vital in situations where medical bills quickly accumulate, ensuring that workers receive the necessary care without facing overwhelming financial burdens. It’s important to note that OAI benefits do not typically include wage replacement or disability payments, which could be a significant drawback for some individuals. 


Employers fund workers’ comp insurance, and the premiums are usually higher than OAI. Depending on the coverage, the job, the location, and several other factors, the costs can vary. Jobs with higher risk, more employees, and more past claims will have a higher cost for workers’ comp. A business can expect to pay an average monthly price of around $45 for less than ten employees.

In contrast, Gigpro offers OAI coverage at a rate of $00.38 an hour, which is automatically deducted from the earnings of the covered individual. The cost is relatively low compared to workers’ compensation premiums, making OAI a more accessible option for gig workers and independent contractors.


Workers’ compensation and Occupational Accident Insurance are two distinct forms of insurance designed to protect workers in case of work-related injuries or illnesses. Workers’ compensation is a comprehensive and widely available policy that provides coverage for medical expenses, lost wages, and disability payments. It is mandated by state laws and generally covers all W-2 employees.

OAI is a private insurance policy tailored towards independent contractors, gig workers, and other non-traditional workers who may not be covered by workers’ compensation. OAI primarily covers medical expenses resulting from accidents that occur while on the job, but it typically does not include wage replacement or disability payments.

Both forms of insurance play crucial roles in ensuring the well-being and financial security of workers. While workers’ compensation provides more comprehensive coverage, it is not always available to certain types of employees. In that case, OAI can be a great option for gig workers and independent contractors. Understanding the differences between these policies will help you make an informed decision about the coverage that best suits your needs.

Gigpro recognizes the importance of insurance for food and beverage professionals who pick up gig shifts to ensure that Pros have the protection they need. By providing affordable and accessible insurance options, we aim to support and empower gig workers in their pursuit of success and security. We hope no one ever gets hurt on a Gig, but things do happen on occasion. Pros working on the Gigpro platform are protected from injury by our OAI (Occupational Accident Insurance) policy, so Pros on the forum will always be taken care of. If a Pro is injured on a Gig, please see the article Pro Injuries on Gigs. For more information, click here to fill out our business support form and we will be glad to assist you.