What Do Accident Benefits Cover?

Accident insurance compensates employees when they go through an unexpected bodily injury, but the funds can also be used for costs outside of medical expenses.

Key takeaways: 

  • Accident benefits provide separate insurance for employees with unexpected injuries. 
  • The benefit is paid to them as a cash payment.
  • Coverage includes bodily injuries like broken bones, fractures and surgery.
  • The compensation can be used for more than just medical payments.
  • Accident benefits help employers stay competitive and give workers access to funds when the worst happens.

Today’s employees want more than a good salary. They want to feel supported by their employer, in and outside of work, with great perks and benefits. One study even found that employees said having “more work benefits” would increase their overall job satisfaction, and that “better compensation and benefits” was among the top three reasons members of Gen X left a job.

It’s not always easy for workers to understand all their benefits, though – especially when it comes to insurance. There may be misconceptions about what’s included in a company’s benefits package, such as time off or health and injury insurance. Accident benefits can be especially confusing because they are their own category of insurance with their own eligibility guidelines and terms. However, offering this additional benefit can help employers stand out.

This guide will explain accident insurance, what is included in accident benefits, how to help employees understand them, and why it’s important. 

What are accident benefits?

Accident benefits refer to a type of insurance that is solely for unexpected bodily injury. Here are a few facts to keep in mind: 

  • This insurance covers costs related to an accident that typically wouldn’t be covered by health or disability insurance. 
  • Just like other types of insurance, employees pay a premium for the benefit in return for compensation if something happens. 
  • Injured parties receive the benefit in cash directly instead of having it routed to a medical provider.

There is a cap on accident benefits, though, including a limit on compensation and how many claims a worker can make. Payouts will vary based on the type and severity of an injury.

What do accident benefits cover?

A big perk of accident insurance is that benefits can cover more than just medical costs. They provide compensation for any cost related to recovery or an inability to work. For example, accident benefits could cover monthly living expenses if someone is unable to perform their job for a time. They can also cover medical costs that may fall outside of health insurance as well as out-of-pocket costs, like the high expense of an ambulance.

Examples of incidents that are often covered under accident insurance include:

  • Broken bones
  • Burns
  • Concussions
  • Dislocations
  • Fractures
  • Emergency surgery
  • Eye accidents
  • Lacerations
  • And many others

Accident benefits will generally cover hospital bills, the cost of treatment, transportation, childcare, groceries, and other applicable living expenses.

Why are accident benefits important?

Employees need support from their employers, especially when faced with an unexpected accident that disrupts their life. Offering accident insurance gives them more options than just health or disability insurance. Health insurance will only cover certain medical expenses, for example, and likely not all of them. Workers then have to deal with copays and deductibles. Disability insurance helps them receive some of their normal compensation when they can’t work.

But accident benefits can be used for anything an injured worker may need during their recovery. This gives employees lots of flexibility so they’re not dealing with big financial burdens on top of everything else. These benefits are payable to employees even if medical insurance covers all of an accident’s costs, too, which creates extra support for the injured party.

How to help employees understand accident benefits

Simply adding accident insurance to your benefits package without thought could lead to confusion when an employee has to use them. Make sure you understand how they work and how they can complement your other benefits. Here are some quick facts:

  • Employees should understand that the severity of their injury will determine the benefit they get, and that all injuries are not treated equally under accident insurance. 
  • Only a small cash sum may be provided for a minor injury, for example. 
  • You will need to educate employees on the benefit limits for each injury and the limit on claims they’re allowed to file.
  • Emphasize the fact that this insurance provides cash directly to the individual to be used how they need it, and isn’t nearly as strict as other types of insurance. 
  • Ensure workers know what the process is for getting this benefit should they have an accident. 
  • They will need to file a claim with the insurance provider to receive compensation and they will have to send certain medical records regarding the injury.

Remember that accident insurance is not the same as car, health, or disability insurance. This may need to be emphasized so that employees don’t confuse these benefits, as they are similar.

Why work with BeneRe for accident insurance

As an employer, you always want to stay competitive with a strong benefits package. Accident insurance is so flexible and is a direct cash benefit that the offering can help you stand out to candidates and satisfy current employees with the support they need when something goes wrong. 

The BeneRe team knows how important it is to be there for employees with better benefits, so we put the needs of our clients first. We are focused on changing the look of the insurance market with our accident, critical illness, and hospital indemnity coverage. We lower the cost for employees and enhance financial protection by pre-negotiating expenses, providing financial transparency, and distributing 100% of underwriting profits to participating members. 

Reach out to BeneRe today for a complimentary financial analysis of in-force programs.