Personal Accident Insurance and Risk Categories

Personal accident insurance is a supplemental insurance policy used in conjunction with life insurance. It is an affordable policy sometimes used to fill the gaps left from worker’s compensation or health or disability insurance. For Americans under 40, accidents are the leading cause of death.

Coverage and Exposure to Risk Many businesses provide this extra coverage for employees who are in higher risk situations, such as individuals who

  • travel frequently for work;
  • travel or are deployed in war zones;
  • commute frequently in high-crime areas, such as areas with higher numbers of carjackings; 
  • work with or in proximity to hazardous chemicals, high-intensity machinery and tools, or potentially dangerous equipment; or
  • perform manual labor for the construction of high-rises.

Personal accident insurance will typically cover for losses as a result of an accident. That may include loss of life; accidental dismemberment; loss of speech, hearing or sight; loss due to coma; or loss due to complete disability.

Risk Categories

Personal accident insurance companies rank types of employment in terms of their risks. Consequently, individuals who work in underground mines, those who work with explosives, electricians who deal with high tension supply, high-rise construction workers, circus performers, and people employed in war zones are ranked as high-risk to insure.

Industries or fields of work with low accident rates and companies that follow safety guidelines set by organizations such as OSHA will be at a lower risk. Personal accident insurance rates will drop for individuals working in low- to medium-risk fields, based upon the potential accidents that can occur.

Employees at medium risk include drivers of heavy vehicles, professional athletes, veterinarians, builders and engineers who work in supervisor roles, and garage mechanics. Occupations associated with a low risk for accidents include banker, architect, teacher, doctor, lawyer and office worker.

Some areas of the world will be put into higher risk categories. For instance, developing parts of the world with high rates of infectious diseases are generally considered high risk areas in which to travel. A doctor working in a low-risk area can suddenly be ranked as a high-risk policyholder by an insurance company if she goes to work in areas with high rates of HIV/AIDS, the Ebola virus or certain other diseases.

It is important to know that personal accident insurance will not cover suicide, drug or alcohol abuse, or preexisting medical conditions, such as epilepsy, that can cause injury when no accident has occurred. Reviewing the conditions of the personal accident policy will clarify the risk assessment.
blog comments powered by Disqus