Personal Accident Insurance
What is Personal Accident Insurance?
Personal accident cover provides a payment if you or your employees, between the ages 16-75, can't work as a result of a bodily injury following an accident. The cover provides 24 hour protection, whether the injury happens at work or outside of work - in their own time - such as when gardening, in their kitchen, while running or cycling.
What exactly is a personal accident?
It's a bodily injury that is caused by an accident that permanently or temporarily prevents someone from working.
Why would I need Personal Accident Insurance?
Unfortunately, there's always a possibility that accidents can happen.
The workplace itself, the nature of machinery in some workplaces and the fact that many jobs might involve driving, all create the potential for serious incidents.
According to statistics from the Health and Safety Executive 2020 annual report, 65,427 non-fatal employee injuries and 111 fatal accidents were reported by employers in 2019/20. At work fatalities accounted for less than one in 100,000 employees, while injuries accounted for 238 in 100,000 employees, so whilst the risk is small, it should not be ignored.
The main cause for these deaths were fall from height, incidents involving being struck by a vehicle and being struck by a moving object. While the primary cause of workplace injuries were slips and trips on the same level, incorrect handling, lifting and carrying, and being struck by a moving object.
According to the Department of Transport, in 2019, there were 1,748 reported road deaths and a total of 153,315 casualties of all severities in reported road traffic accidents.
Even if you feel that the work you or your employees do is not that dangerous and an accident in the workplace is unlikely, you can't control everything. A lapse in concentration is all it takes for an accident to occur.
How does Personal Accident Insurance work?
We'll pay a lump sum of £50,000 if there is an accidental death, accidental loss of limbs or sight, or if someone in your business becomes permanently disabled following an accident.
If someone in your business is unable to work due to a temporary injury, then after 7 days we'll pay their normal net weekly earnings up to £500 for up to 104 weeks.
We also pay medical expenses you may or your employees incur as a result of an accident. This covers the cost of medical or other treatment given or prescribed by a qualified member of the medical profession such as physiotherapy. The cover is subject to policy limits and a maximum payment of £1,000 for each insured person per claim.
At a time when finances may be short due to the inability to work, this cover can give much needed financial assistance. And that's why many of the business insurance policies from Direct Line include Personal Accident as an optional extra.
A seven-day excess period applies to the temporary total disablement weekly payment and we won't pay more than their normal net weekly earning.
What's excluded from Personal Accident Insurance?
There are some cases where we won't be able to offer Personal Accident cover, including anyone working at a height above 15 metres. But also, specific trades like ceiling contractors, aerial installers and glaziers.
We don't cover intentional injuries nor illness and disease not resulting from a bodily injury. Or pre-existing physical or mental illnesses.
Certain hazardous activities aren't covered, such as winter sports, mountaineering, white water rafting and rock-climbing.
Is Personal Accident Insurance tax deductible?
No. Personal Accident Insurance is not a tax-deductible business expense, unlike Public Liability or Professional Indemnity. Even if you see it as an important part of your business expenditure, it's predominantly a benefit for you and your employees.
Can I get Personal Accident Insurance if I'm self-employed?
Yes you can. It could help to cover loss of earnings while you recover if you become injured and can't work.
Am I covered for personal accidents if I have Business Interruption Insurance?
No you're not. Business Interruption Insurance doesn't cover bodily injuries caused by an accident. It covers your income if your premises or equipment is damaged so that it prevents you from working.
Do I need Personal Accident Insurance if I or my employees only do clerical work?
Even though the risk of an accident at work may be lower compared to those doing manual work, there is still a risk. But it's not just at work, Personal Accident Insurance covers people if they have an accident outside of work. The premium charged will be reflective of the trade and activities that your business does and the number of people you're insuring.