Accidents happen when you least expect them—a broken arm from a weekend bike ride, a trip on the stairs, or an emergency room visit after a sports injury. Even with good health insurance, employees can still face deductibles, copays, coinsurance, and lost income. Accident insurance provides a cash benefit after a covered accident, helping employees focus on recovery instead of worrying about unexpected expenses.
Many employees use accident insurance alongside their health insurance to reduce the financial impact of an unexpected injury.
Accident insurance is a voluntary employee benefit that pays a lump-sum cash benefit when a covered accidental injury occurs. Benefits are paid directly to the employee and can be used however they choose, including for:
Emergency room visits;
Ambulance transportation;
X-rays and diagnostic tests;
Fractures and dislocations;
Hospital stays;
Physical therapy;
Childcare or household expenses;
Everyday bills while recovering;
Unlike medical insurance, accident insurance pays cash directly to the employee—not the healthcare provider.
Yes. It can be. Everyone’s tolerance for risk, likelihood of an accident, and monthly budget is different, so it may or may not be right for you. Your health insurance will help pay medical providers for costs incurred, but employees are often still responsible for deductibles, copays, and other expenses. Accident insurance provides cash that can help cover those costs—or any other financial need during recovery.
Generally, no. Accident insurance covers eligible accidental injuries. Separate critical illness or hospital indemnity plans may provide coverage for illnesses.
Yes. Employers may choose to fully fund the benefit, share the cost with employees, or offer it as a voluntary employee-paid benefit.
Accident insurance can be valuable for nearly anyone, but it’s especially helpful for:
Families with active children
Employees with high-deductible health plans (HDHPs)
Outdoor enthusiasts
Athletes and fitness enthusiasts
Employees with physically demanding jobs
Anyone wanting additional financial protection
Yes. Benefits are paid directly to the employee, who can use the funds for medical bills, rent, groceries, childcare, transportation, or any other expense.
Unexpected medical bills are one of the leading causes of financial stress for employees. Accident insurance helps bridge the gap between health insurance and out-of-pocket costs.
Employers choose accident insurance because it:
Coverage varies by carrier, but many plans include benefits for:
Fractures
Burns
Concussions
Lacerations
Emergency treatment
Hospital admission
Surgery related to an accident
Follow-up care
Rehabilitation
Accidental death and dismemberment (in some plans)
| Accident Insurance | Health Insurance |
|---|---|
|
Pays Patient Directly |
Pays Healthcare Providers for Services Rendered |
|
Covers eligible accidental injuries only |
Covers many illnesses and injuries |
|
Pays fixed cash benefits |
Subject to deductibles and coinsurance |
|
Helps pay medical and everyday expenses |
Helps pay medical bills |
Interested in learning about how our benefits support team can help you simplify your benefits? Reach out to us for a complimentary benefits and compliance assessment.
