Reason Global Account Broker James Taylor explains how Group Personal Accident Insurance can be used to protect your business and your employees against injury-related expenses & accidents.
You and your staff are a valuable asset to the running of your business. In the unfortunate event of an accident resulting in an employee’s inability to work, it could significantly impact your business by their absence, payment of the employee’s salary during their recovery period and if any potential workplace modifications are required to enable their return to work (to comply with the Disability Discrimination Act, for example).
The cover is not to be compared with Employers Liability, where compensation is payable direct to an employee where the employer has been found negligent. Group Personal Accident cover benefits are payable in the form of a lump sum or weekly benefit, irrespective of liability following an accident and any such benefit is payable to the employer, not the employee.
As the Employer, you have the freedom to allocate the funds in any way. There are no stipulations as to how the money is utilised. For example, the funds could enable you to employ a recruitment firm to seek a replacement member of staff. Additionally, a ‘golden hello’ payment could be offered to help entice that person to join.
Furthermore, the lump sum could reduce the impact of your business being affected by the employee’s absence, or the weekly benefit can be used to offset their ‘sick pay’.
An alternative is to incorporate the benefits of the Policy into an employee’s contract and as such, the employee or their relatives would then become the recipients of the benefit. If written into the employee’s contract, there would be no Tax obligation on you, as the employer.
How does coverage work?
There are two main options for how cover is provided; firstly, whilst at work (including commuting to/from) or secondly, 24 Hours (so this would include weekends).
The policy encompasses two primary forms of benefits:
- Lump Sum Benefit
This is payable following an accident resulting in death, permanent total disablement, paralysis, loss of speech/limb/sight etc. Additional benefits cover cosmetic surgery and funeral expenses, amongst others, if required following the accident. - Weekly Benefit
In instances where the employee is unable to return to work following an accident, a weekly benefit, usually up to 75% of their weekly wage is payable.
A key distinction bears repeating – the above benefits are payable to you, the employer.
An additional advantage of this lies in the potential to reduce the number/cost of employee liability claims, as where the benefit has been paid to the injured employee, they will already feel they have been recompensed.
Extending Coverage: Travel Benefits
The policy can also be extended to include Travel cover, complete with the standard benefits such as Medical Expenses, Cancellation, Baggage/Electronic Items (lost or stolen), and delay amongst others.
How much does it cost
The premium structure is based upon the number of persons (Directors/Employees) to be insured and the specific benefits selected under the policy.
As an illustrative example, coverage up to 10 persons featuring a Lump Sum Benefit of £50,000 with a Weekly Benefit of £500 would approximately cost around £370 plus Tax per annum.
This is just an indicative cost. The Premiums associated with the coverage offer good value given the extent of protection provided.
For a more precise understanding of the costs tailored to your specific needs, please get in touch; we will be happy to provide a quote for your consideration.
Interested to know more?
Call us today on 01273 739 961 to learn more about accident and travel insurance for your company or get in touch here.
