Starting October 1, 2024, rideshare drivers in Massachusetts will have a new safety net: occupational accident insurance. This insurance is designed to provide financial support if a driver is injured while working, covering medical expenses and lost income. Here’s a breakdown of how it works:
What it Covers:
- Medical Expenses: The insurance covers medical costs resulting from injuries sustained while the driver is online and available for rides. It provides up to $1 million in coverage for up to 156 weeks after the injury.
- Lost Income: If the injury prevents the driver from working, the insurance provides disability payments. These payments are typically 66% of the driver’s average weekly earnings, for up to 156 weeks after the injury. Average weekly earnings are calculated by taking the driver’s total earnings from all rideshare activities in the 84 days before the accident and dividing it by the number of weeks they had earnings during that period.
- Accidental Death Benefits: In the tragic event of a fatal accident while working, the insurance provides benefits to the driver’s family. This includes a lump sum payment of 156 times 66% of the driver’s average weekly earnings and coverage for funeral expenses.
When it Applies:
- The insurance is active when the driver is “online” with the rideshare app and available to accept ride requests or during engaged time (actively picking up or driving a passenger).
- It generally doesn’t cover accidents that happen while the driver is online but not actively engaged in a ride and is simultaneously engaged with another rideshare app or doing personal activities.
Examples:
- Scenario 1: Minor Injury: A driver gets a minor cut from a passenger’s luggage while loading it into the car. The insurance would cover the cost of a visit to urgent care and any necessary medications.
- Scenario 2: Serious Accident: A driver is involved in a car accident while transporting a passenger. The insurance would cover their hospital bills, rehabilitation costs, and a portion of their lost income while they recover. Let’s say their average weekly earnings were $800. They could receive up to 66% of that, or $528 per week, in disability payments.
- Scenario 3: Fatal Accident: If a driver tragically dies in an accident while working, their family would receive death benefits based on their average weekly earnings and assistance with funeral expenses.
Important Points:
- The insurance is provided at no cost to the drivers.
- It doesn’t replace personal car insurance, which is still required.
- Drivers should familiarize themselves with the specific terms and conditions of their company’s occupational accident insurance policy.
Overall, occupational accident insurance offers crucial protection for rideshare drivers, giving them peace of mind knowing they have financial support in case of an unfortunate incident on the job.