Group Accident Insurance
Group accident insurance pays cash benefits directly to employees when they experience a covered accidental injury. Unlike health insurance, which pays medical providers for covered services, accident insurance pays the employee directly — and the employee can use the benefit for any purpose, including medical deductibles and copays, household expenses, transportation, childcare, or other costs that arise during recovery. Accident insurance is typically offered as a voluntary benefit at no cost to the employer, with employees paying the premium through payroll deduction at group rates.
How Accident Insurance Pays
Accident insurance pays scheduled benefits based on the type and severity of the injury or treatment received. Benefits are paid per occurrence and are not subject to coordination with health insurance, meaning the employee receives the benefit regardless of what their health plan pays. Common covered events and benefits include:
- Fractures — benefit amounts vary based on the bone fractured and whether it is a complete or chip fracture
- Dislocations — benefits paid for covered joint dislocations
- Emergency room treatment — a flat benefit paid for emergency room visits resulting from a covered accident
- Hospital admission and confinement — a benefit paid for each day the employee is hospitalized as a result of a covered injury
- Ambulance — a benefit paid for ground or air ambulance transport following a covered accident
- Surgery — benefits for surgical procedures required as a result of a covered injury
- Physical therapy — a benefit for each physical therapy visit required during recovery
- Burns, lacerations, and concussions — scheduled benefits for various injury types
- Accidental death and dismemberment — many accident policies include an AD&D benefit as well
Why Employees Value Accident Insurance
Even employees with good health insurance face out-of-pocket costs when accidents happen — deductibles, copays, and coinsurance can add up quickly. Accident insurance provides a cash benefit that helps cover these gaps without requiring the employee to draw down savings or take on debt during recovery. For employees with families, the benefit can also cover costs related to a child's sports injury or other accidental injuries to covered dependents.
Industry Considerations
Accident insurance is valued across all industries, but employees in physically active roles — construction, manufacturing, healthcare, education, and retail — tend to place particularly high value on this coverage. Because it is typically offered on a voluntary basis at no employer cost, it is easy to add to a benefits package as an enhancement that employees appreciate. Etowah Insurance Group can help evaluate accident insurance options and find coverage that complements your existing benefits program.
