Group personal accident insurance and workers’ compensation cover job-related employee injuries. However, they also have some significant differences employers should understand before choosing one over the other for their business. Here is what employers should know regarding group personal accident insurance vs workers compensation.
Employer Responsibility
Under workers compensation, if an employee gets injured, workers compensation covers all injury-related expenses, including lost wages. The employer is rarely responsible for related out-of-pocket.
Under group personal accident insurance, expenses are only paid up to policy limits. The employer is responsible for any costs the policy does not cover.
Employer Liability
An employee covered by group personal accident insurance who gets injured can sue the employer for pain and suffering and punitive damages. The employer bears the burden of proof in an injury lawsuit brought by an employee.
An employee covered by workers compensation holds the burden of proof in a work-related injury lawsuit and can only file a lawsuit in rare cases. This significantly reduces the employer’s liability.
Group personal accident insurance is typically the cheaper of the insurance types but could cost considerably more if a serious injury occurs. Employers should weigh options carefully when deciding on group personal accident insurance vs workers compensation.