Posted: 12.30.2011
Helping Employees Bridge the Gap with Accident Insurance

Employers continually search for ways to tailor benefits to meet employees’ needs while simultaneously reducing costs. Unfortunately, for many employers, the only way to create meaningful reductions in cost is either to increase the amount employees pay toward their benefits or to increase employees’ out-of-pocket costs with higher deductibles, coinsurance and copays.

Accident insurance can act as a bridge to help employees cope with the financial hardship of increased out-ofpocket costs related to an accident. Adding an accident option for employees can be a solid strategy to help meet the employer’s goal of cost reduction while maintaining employee satisfaction.

Here’s how accident insurance works. When an insured member sustains an injury, the benefits are paid in a lump sum and paid according to schedule; the amount is based on the type of injury sustained and the treatment needed. Injuries such as concussions, contusions, fractures and burns (among others) each carry their own benefit payment amount. Benefits are also paid when the insured member has specific treatments or services relating to the accident, such as ambulance transportation, hospital admission, surgery and emergency room visits. In most policies, benefits are paid on a cumulative basis, so the member may receive multiple payments for a single injury. The price of accident insurance is nominal and is usually fully paid by the employee, although employers may help fund the benefit if they wish. Employees may choose to cover themselves as well as their family members.

Health status, age or other demographic factors typically do not apply to the cost of the coverage and coverage is “guarantee issued”, meaning no one who applies is turned down. These plans work particularly well for employees who are offered multiple medical plan options with varying out of pocket cost levels. Young, healthy employees may feel more comfortable electing a low-cost, high-deductible plan if they are able to protect themselves against unforeseen problems with accident coverage.

Many of the newer accident products that are available today have improved enrollment and administrative processes, allowing the employer to offer this benefit without adding significant administrative burdens.

If you’d like more information about integrating accident insurance into your current employee benefits program, speak to a Brown & Brown benefits professional.

Steve Hettrick
Brown & Brown of Detroit

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