Who needs it?
Although we’d all like to think we are FRPSHWHQWWKHFKDQFHVRIDVHOILQʴLFWHG accident are greater than you may think and for the self-employed, without anyone else to blame the cost will fall to you or your family. Yet despite the risks, and the obvious consequences of having an accident, only 5%-10% of my clients purchase this insurance cover. They are leaving themselves exposed in an area where they could be protected.
As a broker we can use our expert knowledge to highlight areas of cover that you may not have FRQVLGHUHGLQFOXGLQJDGYLFHRQSROLF\OLPLWV sums insured. Whilst you can obtain quotes online, if you are not used to dealing with some of the specialist parts of the insurance industry LWFDQVRPHWLPHVEHKDUGWRʳQGWKHVSHFLʳF areas of exposure your construction work may have, and we see dozens of policies in this sector every day! A good broker will know which insurer(s) have the knowledge and expertise to be able to provide the most appropriate cover that you need. This is vital when it comes to making a claim, as the understanding that the insurer and broker have of the policy, and the risks that are insured under it, will make the process of settlement of valid claims much easier.
There are obviously some people in life that may see more value in taking out this kind of policy, particularly those who work in an industry with a more pronounced risk of accidents, such as construction. However, it’s ZRUWKQRWLQJWKDWHYHQLI\RXDUHDQRIʳFH worker whose hobbies don’t involve any dangerous activities, you may still consider this kind of insurance if you drive or cycle to work every day.
What is it?
Personal accident insurance should be a priority IRUWKHIROORZLQJNLQGVRISHRSOH
Personal accident insurance pays out if you VXIIHU
•
Those involved in construction, industrial or any other profession that involves the regular use of heavy and potentially dangerous machinery or substances or working at height or depth Those that drive or cycle around for large parts of the day such as delivery drivers, bicycle couriers and food delivery workers Self-employed people who may have no other means of covering a period of lost earnings and business expenses People whose job involves the potential for violence, such as security and prison staff, bouncers, and police
•
Temporary total disablement (an injury that prevents you working temporarily)
Won’t it cost more?
•
Permanent total disablement (an injury that prevents you working permanently)
•
You might assume that engaging the services of a broker will result in you paying more for your insurance. However, insurers may actually provide lower rates to brokers, due to the fact that business placed through a professional broker, and the value they add with expert advice and support, is often a lower risk for insurers. Also don’t forget that with cover VSHFLʳFWR\RXUUHTXLUHPHQWV\RXZLOORQO\SD\ for what you need. Finally, it is important to know that your broker will be there for you after the insurance is placed! After a policy is sold we will continue performing valuable day-to-day services, monitoring the adequacy of coverage limits and SROLF\WHUPVDVPDUNHWFRQGLWLRQVʴXFWXDWH dealing with any mid-term adjustments, future renewals and any claims should they happen. fun
•
/RVVRIOLPEV
•
/RVVRIVLJKWVSHHFKRUKHDULQJ
•
•
Death
Unlike most insurance policies, personal accident insurance does not indemnify you. This means it doesn’t try to put you back in the position you were in before the accident RFFXUUHG,WSD\VRXWDʳ[HGDPRXQWRIPRQH\LI you meet the policy terms whether you’re in a better position or not after the accident!
•
What it covers and how to work out what you need
How does it differ from other personal insurance policies?
Personal accident insurance allows you to FKRRVHIURPDUDQJHRIEHQHʳWRSWLRQVȡD typical policy may cover £400 per week for temporary total disablement, or a £50,000 lump sum for permanent total disablement. We can tailor the levels of cover to suit your individual QHHGV6RPHSROLFLHVSD\Dʳ[HGDPRXQWRI PRQH\IRUVSHFLʳFLQMXULHVGHSHQGLQJRQWKH level of cover. For example, a policy might pay £10,000 for loss of a limb, £8,000 for loss of an eye, £100,000 for the death of a policyholder, etc. This is all money that could help you and your family after an accident, especially if you rely on your work to meet your living expenses.
Personal accident insurance is often confused with payment protection insurance (PPI), income protection insurance and critical illness cover. PPI protects your payments if you have an accident or become sick or unemployed. It covers accidents but is not the same as personal accident insurance. Income Protection insurance protects your income if you fall ill and can’t work. Personal DFFLGHQWSROLFLHVSD\DRQHRIIFDVKEHQHʳWEXW income protection policies pay a percentage of your income each month. Critical illness pays a lump-sum cash payment if you develop a critical illness like cancer, heart failure or stroke.
A theoretical example of how personal accident insurance might work
John is a company director in a construction ʳUP+HEURNHKLVDQNOHRQDZHHNHQGUXQDQG needed to be in a cast for eight weeks. As a result, he wasn’t able to attend site meetings RUIXOʳOKLVXVXDOUROHLQWKHEXVLQHVV7KH personal accident insurance in his business policy covered his lost income since the insurance pay out was £10,450 covering the cost of accidental injury. The cost to John was £100 – the excess on his policy. For more information on insurance for the construction industry please contact Ryan on 01206 147186 or email ryan.whybrow@ scruttonbland.co.uk
How a broker can help
6FUXWWRQ%ODQG,QVXUDQFH%URNHUV/WGLV committed to providing insurance solutions within all classes of insurance, including Personal Accident. Our experienced professional teams can offer impartial advice and have access to a wide range of products and insurers that online insurance providers may not offer.
P R O P E R T Y A N D C O N S T R U C T I O N | S C R U T T O N B L A N D | 1 1
Made with FlippingBook Learn more on our blog