Group Accident Insurance

April 27, 2023
Two managers compare employee benefit plans.

When someone is in an accident, it’s possible that they won’t have enough insurance coverage to pay for the costs resulting from that accident. Health insurance can only cover so many medical bills, and workers’ compensation insurance only covers accidents that happen while on the job. When someone has exhausted all of their insurance coverage, they will have to cover any additional expenses out-of-pocket. Many people can’t afford these out-of-pocket expenses, which is why many people will instead rely on accident insurance.

In general, accident insurance is a supplemental insurance policy that provides benefits to help pay for expenses resulting from an accident. If someone is injured in a type of accident that’s covered by the policy, they will receive a benefit payment that can be used to cover their expenses.

There are two types of accident insurance: personal accident insurance and group accident insurance. Personal accident insurance covers just the individual policyholder, and all the risk is assumed by them. But what is group accident insurance?

What Is Group Accident Insurance?

Group accident insurance is an accident insurance policy that’s issued to a group to provide coverage to its members. Often, group accident insurance coverage is available as a benefit to employees through their employer’s benefits program. In those cases, employees are automatically provided coverage without having to apply themselves and undergo a health exam. The employer pays the premium and will often receive a discounted rate because the risk of loss is spread across a group of employees.

In addition, employees can also take advantage of a group voluntary accident insurance policy by electing to paying the premiums through a payroll deduction. If elected, the employee can choose who to cover with their portion of the policy. If an employee needs to use the coverage, the insurer will pay a lump sum directly to the employee for covered accidents. The employee can then use the money to cover whatever expenses they deem most appropriate—like additional medical bills, lost income, home healthcare equipment, childcare, and more.

What Does Group Accident Insurance Usually Cover?

Employees can receive benefits under a group accident insurance policy for certain types of accidents covered under the policy. Group accident insurance covers most common accidents from day-to-day life. Some injuries that this type of policy would cover include, among others:

  • Fractures
  • Concussions
  • Burns
  • Tendon and ligament tears
  • Dislocations
  • Lacerations

Benefits under a group accident insurance policy can also be used to pay for medical procedures that are needed as a result of an accident, such as:

  • Ambulance transport
  • Emergency air transport
  • X-rays
  • Hospital admission
  • Surgical procedures
  • Rehabilitation

Essentially, if an employee’s injury is suffered as a result of a covered accident, a group accident insurance policy can provide benefits to help cover expenses from the accident. The lump sum benefit can be used for medical procedures, or it can be used for anything else that other insurance policies don’t cover—like lost wages or childcare. Even if someone already has health insurance, dental insurance, car insurance, and disability insurance, an accident could still cost them more than they’re able to afford. Accident insurance can step in and help employees in their time of need.

Group Accident Insurance Advantages

Group accident insurance can help both the employer and the employees. The employer wins because their employees are taken care of and are able to come back to work. In addition, employees look for companies that offer benefits like group accident insurance. They are more likely to stay at the company if they’re offered benefits such as accident insurance.

These are some of the benefits for employees:

  • Coverage in situations where other policies will not cover it
  • Financial help for expenses incurred from an accident
  • Coverage for beneficiaries, like a spouse, partner, or child
  • Benefits for avoiding injuries—some policies will pay after a certain period of time where injuries are avoided 

Employees win by having the assurance that they are covered if an accident happens outside of the workplace—or if something happens to a dependent.

The Bottom Line

Overall, group accident insurance provides employees with benefits if they’re in an accident, and it can help provide them with a sense of additional security when offered through their employer. Employers can also provide this insurance coverage to help make sure their employees are taken care of. Employers also want to be sure that they’re finding the right group accident insurance provider. Here at Acrisure, we can help employers get access to the group accident insurance that’s right for their employees. Contact us today! 

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