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26/10/2020


What is Group Personal Accident Insurance?

Account Executive Rob Rowley explores Group Personal Accident Insurance and how it could be used to protect your business and your employees.

Do you insure members of your team in case they have an accident and are unable to work?

Did you know you could insure some – or all – of your employees and receive a lump-sum benefit if they are injured and can’t work?

Group Personal Accident Insurance provides unique business benefits and is not to be confused with cover provided by Employers’ Liability Insurance.

What is Group Personal Accident Insurance?

It is an insurance policy that covers your employees and directors in the event of an incident resulting in death or disablement, including loss of limbs, sight, speech or hearing. The policy will pay out either a lump sum or a regular payment, which can be used to support the employee or their beneficiaries or cover a replacement member of staff. 

What are the benefits of Group Personal Accident Insurance?

There are several benefits to taking out Group Accident Insurance. Not only does it ensure that your employees have financial support if the worst happens, but it also demonstrates that you are a responsible employer who takes your team’s well-being seriously. 

It can also give you as an employer a bit of extra financial support by providing funds to hire a replacement member of staff while your employee cannot work. 

What’s the difference between Group Personal Accident Insurance and Employers’ Liability Insurance?

Employers’ Liability Insurance is a legal requirement for any organisation in the UK that has employees. It pays compensation to the employee in cases where the employer is shown to be negligent.

Group Personal Accident cover is different. The main reason is that the benefit is payable to the employer, as the policyholder, regardless of liability for the incident. As such, it means your claim payment can be used in a variety of ways:

    • paying employee earnings while they’re off work; or
    • employing a replacement member of staff; or
    • Paying the employee’s family in the case of a fatal accident (a valuable employee benefit that can help with staff retention); or
    • a combination of all of the above!

Another scenario to consider involves employee injury at work. If a Group Personal Accident policy is in force, the resulting claim payment could be given to the employee, who may then feel recompensed. As a result, they may not feel the need to bring a potentially expensive Employers’ Liability claim against your company, which could significantly impact on your following renewal premium.

Flexible options

I should also point out that, under a Group Personal Accident policy, employees can also be insured on a lump-sum or multiple-of-salary basis.

Plus, cover can be arranged on an “occupational only” basis (i.e. the employee is insured for injuries sustained at work) or on a 24-hour basis (for injuries at work and in their own time).

In addition, cover can include weekly benefits payable in the case of temporary total disablement.

Premiums for Group Personal Accident Insurance, for a small workforce, can start from as little as £280 per year* and provides numerous benefits.

Please note that it does not cover employee sickness. However, this can be added to the policy, depending on a number of factors.

Want to know more about Group Personal Accident Insurance?

Call Rob and the team today on 01603 218230 or 01603 218250 and he can talk you through the cover.

 

*Price indicative of cover for 1 x annual salary basis for death, permanent total disablement, loss of sight, loss of limb, loss of speech, loss of hearing. Cover would also typically include temporary total disablement at 100% of weekly wages and temporary partial disablement at 50% of weekly wages (both subject to 7-day excess period).

This calculation is based on an annual wage roll of £200,000 and cover on a 24-hour basis.

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