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Home Tradesman Insights What is the Truth About Personal Accident Insurance?

What is the Truth About Personal Accident Insurance?

Debilitating injuries from falls, electric shocks or machinery accidents pose major risks in active trade roles. While workplace and public liability insurance protect clients and employers from legal and compensation claims should incidents happen on-site or driving between jobs, personal accident insurance provides special protection for you and your teams’ financial wellbeing if injuries disrupt your income streams.

But how truthful are the popular assumptions around this policy type? And how can personal accident and sickness insurance cover support your future financial resilience?

Debunking Common Coverage Myths

Misconceptions and myths around personal accident insurance often deter tradespeople from appreciating the true value of protection. 

Let’s cut through the confusion and get down to the facts about what comprehensive policies offer if the worst happens: 

“It Only Covers Permanent Disabilities”

In reality, modern accident and sickness policies also cover temporary incapacitation from illnesses and minor injuries that prevent work for weeks or months before full recovery. These stop-gap income substitutes prove invaluable.

“The Small Print Is Designed To Avoid Payouts”

Insurers do scrutinise and challenge dubious claims. However, reliable providers offer clearly defined coverage terms transparently upfront, allowing informed decisions on appropriate plans for your needs. Reputable companies want to build trust through paying out legitimately.

“Exclusions Make It Pointless”

While extreme hazards do get excluded, common-sense dangerous activities you actually engage in on the job do qualify for claims. Sensible exclusions help regulate premium costs.

“Claims Processes Are Slow and Painful”

Insurers work closely with doctors providing documentation to validate injury impacts,  enabling fast-tracked benefit payments directly to you. Most payout within days of final medical reports arriving.

Choosing Coverage Wisely

The optimal plan provides adequate income replacement if you’re suddenly unable to work without wasting money on excessive premiums. Navigate coverage options using these tips:

Income Replacement Periods

Align benefit payment duration to your financial obligations. If you have minimal savings, extend replacement income duration to account for slower recoveries. If you have ample savings as backup, shorter periods suffice.

Deferred Periods

Accept longer initial claim delays for lower premiums if you have sufficient sick pay or savings to cover the first few weeks until insurance payments kick in. This saves unnecessary costs.

Injury Categories and Definitions

Scan category definitions around breaks, burns and mobility loss, ensuring they capture likely incidents that could realistically arise. Don’t pay extra for obscure improbable misfortunes.

Specialist Occupation Policies

Look for tradesman tailored plans covering common exposures like falls from ladders, electric shocks, cuts and crush injuries. General consumer covers often exclude these so they prove pointless.

Enhancing Protections Further

Supplementary coverage help fill gaps where ven comprehensive accident policies can fall short:

Income Insurance

Protects against illness and stress-related causes forcing absence like heart disease, cancer or burnout. Accident policies predominantly focus on physical injuries from specific incidents.

Contingent Policies

Covers partners and relatives’ income losses from providing home care assistance during your recovery. It can be easily overlooked that becoming a carer can lead to partners reducing work hours substantially following accidents.

Business Overheads Insurance

Covers studios’ ongoing operating expenses like rent, equipment finance payments and other bills during periods where no revenues get generated while recuperating. 

Tradesman Talk

Have you claimed successfully or unsuccessfully on personal accident or sickness insurance policies before? How did the experience compare to expectations around ease of process and payment timescales? Share your insights below!

Until next time, stay healthy and make sure it’s Tradesman Saver.

Dean Laming

Dean Laming is a Chartered Insurance Broker with more than 25 years insurance experience. Through various underwriting, operational and management roles, Dean has built up extensive knowledge of how to run a business and is now Managing Director of Tradesman Saver, part of the wider Henry Seymour Group.

All articles by Dean Laming

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