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Employee Personal Accident Insurance

Protect your team. Protect yourself.

Accidents can happen anytime and anywhere, and when they do, the financial impact can be significant. Personal accident insurance can provide financial protection if an accident results in serious injury, disability or death.

Whether you’re an employer seeking to safeguard your workforce or an individual looking for extra security beyond standard health insurance, this coverage can provide peace of mind if life takes an unexpected turn.

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What is personal accident insurance?

Personal accident insurance typically provides a lump-sum benefit to an insured employee or their family following an accidental injury, disability or death. It often provides more broad coverage than health insurance or workers’ compensation, since some accident insurance policies provide direct cash benefits that can help cover expenses ranging from out-of-pocket medical costs to income loss during recovery.

What does personal accident insurance cover?

While every policy is different, covered incidents may include:

Accidental death or dismemberment
Permanent or temporary disability
Loss of limbs, sight or hearing
Broken bones, fractures or dislocations
Dental or eye injuries
Lacerations or burns

This coverage supplements existing health, disability and life insurance plans to help employees and their families remain financially secure after a serious accident.

Real-life examples include slipping on a wet floor, falling off a ladder or sustaining an injury during sports or travel. Because accidents can happen anywhere, some plans offer 24-hour worldwide protection.

How Personal Accident Insurance Works

When an accident occurs, the insured or their beneficiary receives a lump-sum or scheduled payment that’s based on the type and severity of the injury.

Depending on the policy, benefits can help cover:

Hospital stays, surgeries and rehabilitation

Lost wages during recovery

Home or vehicle modifications after disability

Health insurance deductibles

Unpaid bills, such as rent, utilities or childcare

Funeral expenses or survivor support in the event of accidental death

How Personal Accident Insurance Compares to Other Coverage

Accident insurance is designed to complement your existing plans by filling gaps that health and disability coverage may leave, especially for those with high-deductible health plans or high out-of-network medical costs.

Health Insurance

Primary Purpose: Helps pay for medical treatment and hospital bills

Typical Payment Type: Pays medical providers directly

When It Applies: Illness or injury (accidental or not)

Disability Insurance

Primary Purpose: Replaces a portion of lost income

Typical Payment Type: Monthly income benefit

When It Applies: Illness or injury preventing work

Critical Illness

Primary Purpose: Covers major illnesses (e.g., cancer, heart disease)

Typical Payment Type: Lump-sum benefit

When It Applies: Upon diagnosis of a covered illness

Personal Accident Insurance

Primary Purpose: Covers injuries from accidents

Typical Payment Type: Lump-sum or scheduled benefit

When It Applies: When injury or death results from an accident

Why should employers offer group personal accident insurance?

Providing personal accident coverage as part of your employee benefits package is a simple way to show employees that you care about their well-being.

For employers, this coverage can enhance your overall benefits offering at a relatively low cost. It may also contribute to improved employee morale and retention by providing greater peace of mind and financial support for workers and their families.

For employees, group personal accident insurance offers several advantages. It typically pays cash benefits directly to the insured, which means it can be used for a variety of purposes, not just medical bills. When offered through an employer, coverage is often available on a voluntary basis with convenient payroll deductions. Plus, premiums are usually more affordable under group plans, and some policies provide guaranteed acceptance, which makes the enrollment process easier for eligible employees.

According to the CDC, injuries account for approximately 40 million emergency room visits each year, and a Federal Reserve study shows that 40 percent of Americans don’t have $400 available for an unexpected expense. Personal accident insurance is designed to bridge that financial gap when health coverage isn’t enough.

What’s Not Covered

While coverage can be fairly broad, some exclusions apply. Accident insurance generally does not cover:

Intentional self-injury or suicide
Illness or disease not caused by an accident, such as chronic conditions, infections and degenerative diseases
Injuries sustained while under the influence of alcohol or drugs
Participation in hazardous activities, such as racing, extreme sports or war-related incidents
Pregnancy or childbirth-related injuries (unless specifically endorsed)
Non-accidental deaths, such as deaths caused by natural illnesses or medical conditions

Why Higginbotham?

At Higginbotham, we take a holistic approach to employee benefits. We do more than provide policies – we build partnerships with our clients that put people first.

Our experienced benefits advisors take the time to understand your organization, your team and your goals. Then, we design a benefits strategy that fits both your needs and your budget.

And, through our Day Two Services®, our commitment continues year-round with services like:

Corporate wellness programs
In-house Employee Response Center for your team’s questions
Compliance support
Population health management
Education and enrollment resources for employees

Three Things to Remember About Personal Accident Insurance

It’s not just for the workplace

Most policies cover accidents that happen at home, on vacation or during recreational activities.

Benefits are paid directly to you

Depending on your policy terms, you could use the payout for expenses like medical bills or rent.

It complements existing coverage

Accident insurance helps to fill the financial gaps that health or life insurance can leave behind.

Employee Personal Accident Insurance FAQs

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What does employee personal accident insurance cover?

It provides financial benefits in the event of accidental death, disability or injury. While coverage will depend on the specific policy terms, it may include lump-sum payouts for death or disability, income replacement during recovery and reimbursement for accident-related medical expenses.

Is accident insurance the same as health insurance?

No. Accident insurance pays benefits directly to the insured after an accidental injury, while health insurance pays health care providers for medical care. Accident insurance is designed to supplement your health plan by helping to cover some out-of-pocket costs.

Do I need a medical exam to get group personal accident insurance?

Typically not. Many group accident policies are guaranteed issue, which means that no medical exam or health questionnaire is required.

How are premiums determined?

Premiums depend on factors like coverage amount, number of employees, industry type and optional add-ons, such as ambulance benefits.

Who should consider personal accident insurance coverage?

Both employers and individuals. Employers can add it to their benefits program to protect workers, while individuals can purchase it for added financial security in case of an unexpected accident.

Ready to protect what matters most?

When it comes to protecting your employees and your loved ones, Higginbotham can help you secure a personal accident insurance plan that’s designed to provide financial security when you need it most.

To learn more, request a free quote from one of our employee benefits consultants.