Group Accidental Death & Dismemberment (AD&D) Insurance
Group accidental death and dismemberment insurance — commonly referred to as AD&D — pays a benefit when an employee dies or suffers a serious physical loss as the direct result of a covered accident. Unlike life insurance, which pays a benefit regardless of the cause of death, AD&D coverage is specifically limited to losses caused by accidents and does not cover death from illness or natural causes. It is commonly offered alongside group term life insurance as a complement to — rather than a replacement for — life coverage.
What AD&D Covers
AD&D policies pay benefits based on a schedule that assigns a percentage of the principal sum to each covered loss:
- Accidental death — pays the full principal sum (100%) to the beneficiary if the insured dies as a direct result of a covered accident
- Loss of two limbs or both eyes — typically pays the full principal sum (100%)
- Loss of one limb or one eye — typically pays 50% of the principal sum
- Loss of speech or hearing — benefit percentage varies by policy
- Paralysis — many policies include quadriplegia, paraplegia, and hemiplegia benefits at varying percentages
- Coma benefit — some policies provide a monthly benefit if the insured enters a coma as a result of a covered accident
Common Exclusions
AD&D policies contain exclusions that are important to understand. Most policies do not pay benefits for losses resulting from illness or disease, suicide or self-inflicted injury, intoxication, war, or participation in certain high-risk activities. The accidental nature of the loss must be established, and the loss must occur within a defined period — typically 90 to 365 days — following the accident.
Voluntary AD&D Options
In addition to employer-paid AD&D, many employers offer voluntary AD&D coverage that allows employees to purchase additional protection for themselves and their dependents. Voluntary AD&D is typically offered at group rates and is portable, meaning employees may be able to continue coverage after leaving the employer.
Industry Considerations
AD&D coverage is particularly valued in industries where employees face elevated physical risk — construction, manufacturing, transportation, agriculture, and similar fields. However, it is a standard component of competitive benefit programs across all industries. The right benefit level, plan design, and optional features depend on your workforce, industry, and overall benefits strategy. Etowah Insurance Group can help structure an AD&D program that complements your existing life and disability benefits.
