Group Accident Insurance: Definition, Inclusions and Benefits

When shopping around for employee insurance plans, there are lots of options to choose from. Among some of the top choices, group accident insurance is a popular policy type for its affordability, ease of enrollment and limited restrictions on healthcare providers.

But, what are these policies really all about, what exactly do they provide coverage for and how valuable are they to employees? Learn all of that and more in this brief introduction to group accident insurance.

What Is Group Accident Insurance?

Group accident insurance is a type of insurance coverage that provides financial protection against accidental injuries to a group of individuals. Oftentimes, it's offered by employers to their employees.

While workers are one of the more common groups to receive this type of policy, it can also provide coverage for members of an association or purchase as one-off coverage for participants in a specific event. It works very similarly to a personal accident insurance policy, with the main difference being group coverage instead of sole individual accident coverage.

Group accident policies also act as supplemental coverage for employees and larger group health insurance policies to help fill gaps and protect them against steep accident-related costs that, without proper coverage, could put a strain on their finances.

Premium payments for voluntary accident insurance are often made by employees through payroll deduction.

For employers, group accident insurance is a great way to add to their employee benefit offerings without increasing their costs.

What Does Group Accident Insurance Provide Coverage For?

Group accident insurance coverage varies between policies and providers. However, in general, these group policies protect a range of common accidental injuries, such as:

• Burns.
• Dislocations.
• Fractures.
• Concussions.
• Eye injuries.
• Lacerations.
• Dental injuries.
• Ruptured discs.
• Tendon, ligament and rotator cuff injuries.
• Accidental death.

Disbursement of benefits is independent of the employee's income or their involvement in another insurance plan provided by the employer.

In addition to providing coverage for accidental injuries, a group policy typically also covers associated medical expenses, such as:

• Outpatient care and doctor visits.
• Ambulance and other transportation costs.
• Hospital and emergency room costs.
• Surgical procedures.
• Medication.
• Rehabilitation.
• Lost wages due to injury.
• And more.

What Are the Benefits Of a Group Accident Plan?

Group accident insurance offers a handful of unique benefits for both employers and employees that allow it to stand out among other popular coverage options.

• Affordability: Group accident insurance plans are often more affordable than individual policies because the premiums are typically shared between the employer or organization and the insured individuals. This makes it a cost-effective way to provide coverage.
• Ease of enrollment: Employees can usually enroll in group accident insurance without the need to provide medical exams or take part in health screenings. Other policies may require insureds to provide these records, which can make it difficult to obtain affordable coverage. Group accident insurance makes coverage more accessible to individuals — including those with pre-existing conditions.
• Supplemental coverage: Group accident insurance is often offered alongside other health insurance policies to help fill gaps and reduce large out-of-pocket healthcare costs for employees.
• Portability: In some cases, group accident insurance may be portable. This means that individuals can maintain coverage even if they leave their job or organization, as long as they continue to pay the premiums.
• Customization: Employers often have control over a group accident plan and can tailor it to suit their employees' needs.

Oftentimes, optional riders or other benefits are added. Examples include:

• A disability benefit that pays out if an employee cannot work due to injury.
• Mental health benefits for those dealing with mental health effects as the result of an accident.
• Wellness benefits for completing screenings and procedures.
• A benefit for avoiding injury.
• And more.

Determine What's Best For You and Your Employees

Before deciding on an insurance policy for employees, it's important to determine what's best for them and for your business. With expert actuarial assistance, you can be sure you're making the right choice. Contact Lewis & Ellis today.