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Accident Insurance

The Importance of Accident Insurance

Accidents can strike any workplace at any moment. This remains true regardless of how much care and planning is given to safety procedures. Obviously, accidents occur more frequently in physically demanding jobs, but they also can happen in work situations where the employee sits at a desk for most of the day peering into a computer screen.

Who Needs It

In order to attract higher quality employees, employers will often offer the most competitive benefits packages their budgets will allow. Accident insurance, (aka ‘occupational insurance’) is generally available for employees, which affords workers peace of mind in knowing they have many protections in the workplace. Good coverage is available with these kinds of policies and can provide long-term protection for any worker in any particular business.

This type of coverage also provides great protection to not just the employee, but the employer as well. This component of a workplace benefits package functions by helping to compensate both parties for the outside expenses they may face after an accident that is not covered with a traditional health care policy. This coverage basically goes beyond basic health insurance coverage and is supplemental.

How It Operates

Accident insurance can pay out either a lump sum amount or graduated payments to employees, as desired. Someone opting for this type of a policy should look into the following:

• Accident liability limits

• Benefit levels for disability and death

• Deductible amount per incident

Each policy will have a myriad of levels of coverage depending on the workplace environment and the employee benefits offered in the entire package. Coverage types range from the provision of medical payments for a single incident to a full disability payment course that matches an employee’s salary for a certain period of time.

Types of Coverage Available

An accident policy can come in the form of a specific liability coverage type or as a more comprehensive plan. This kind of liability coverage is normally referred to as ‘contingent coverage’ and is usually better for those who function as independent contractors or have an owner-operator status within a business. The policy activates once a claim is made and can often have optional benefits such as supplemental coverage for an employee’s spouse and offspring.

Many comprehensive plans will offer benefit tiers that begin when the claim is filed. There are also AD&D (accidental death and dismemberment) coverage, medical expense assistance and long-term hospital care, to name a few. Speak with one of our insurance professionals for more information.