Group accident insurance as an employee benefit

Life is unpredictable. One moment, you’re walking down the same stairs which you use everyday. And the very next, you’ve missed a step and ended with a fractured knee. Sounds painful? It certainly is. And the additional expenses that come with an accident don’t help ease the pain at all. A group accident insurance plan helps employees deal with the unexpected twists (sometimes quite literally) that life throws at them. 

One of the many additions to an employee benefits plan is a group accident insurance policy. Just like group disability and group critical illness benefits, an employee accidental insurance policy can help employees during a difficult time. But what exactly is it and what does it cover? Let’s find out. 

What is group accident insurance?

A group accident insurance policy pays a lump sum amount to an employee in the event of an accident. This benefit can ease the financial burden of a medical intervention that may be required for an employee to recover. A group accident insurance policy will usually have Accidental Death and Dismemberment (AD&D) benefits—more on this later. 

Apart from the physical strain that an accident puts an employee through, it also causes immense financial stress that they may not be prepared for. A group accident insurance policy can help them and their families with the costs incurred during the recovery process. The payout from a group accident insurance goes directly to the employee, who can use it for hospitalization, medication, rehabilitation or in covering other personal expenses that a provincial health plan doesn’t cover. 

Employee accident insurance plans extend beyond work-related injuries. Any employee covered under this policy will get the benefit regardless of how or where an accident occurs. This means that an employee accidental insurance policy should not be limited to high-risk occupations such as construction workers or truck drivers. It should be offered to employees regardless of their job or occupation.

What do employee accident benefits cover?

Different insurers offer different kinds of coverage under a group accident insurance plan. But most policies cover a range of accidental injuries including:

Group accident insurance policies cover the medical expenses associated with an accidental injury. These include:

Group Accidental Death and Dismemberment (AD&D) benefits

AD&D benefits provide coverage for an employee if they meet with an accident regardless of where they are in the world and whether they’re on or off the job. If an employee suffers any of the losses listed in their policy document, they will get AD&D benefits. An AD&D policy usually has a defined meaning of “accident”. Most insurers define it as a sudden and unexpected event that causes unexpected injuries or bodily harm. 

Group AD&D plans are customizable and employers can build a plan according to their unique needs. These customization options include:

How do group accident benefits work?

Typically, the premiums for a group accident insurance policy are paid by the insured employee through payroll deductions. Employees have the option to add their family members to the policy and pay any additional premium to cover the dependents.

Employee accident insurance plans are also often portable so an employee can continue to be covered under this policy, even if they leave their organization. Group accident insurance is a pretty straightforward policy. An insured employee will get a lump sum payout if they meet with an accident and they can choose to use this benefit in any way they want to. Apart from the medical costs, they can also use it to:

✅ Hire child care if required 

✅ Substitute income from missing work 

✅ Home healthcare requirements 

✅And more

Who pays the insurance premium?

The premium for a group accident insurance cover is typically paid by the insured employee. This policy is usually offered by employers as an optional supplemental cover in addition to other benefits. Depending on the insurer and the plan they offer, the premium can vary. 

How is the premium for employee accident benefits calculated?

Different insurance companies have different methods to calculate the premium for an employee accident premium policy. Generally, there are five key factors that can determine employee accident insurance premium rates: