What is Personal Accident & Illness Insurance?
As the old saying goes, accidents do happen! A simple spot of DIY around the house could result in a broken bone, loss of sight, a severed limb or even worse, death. All of which could cause you to be out of action for some time or even permanently!.
An accident is probably the last thing you can afford in operating your business.
If you were temporarily unable to work due to an accident or illness, such a policy could pay you a weekly benefit of up to 85% of your salary.
There is also an option to provide a lump sum benefit in the event of death or permanent disablement following an accident.
Getting cover doesn’t have to be hassle and involve visits to the doctor, you can get cover without any forms or medicals. Be aware that you won’t typically be covered for any pre-existing medical conditions/injuries or any hazardous or some sporting activities that you participate in.
Who should consider it?
Those professions requiring Professional Indemnity insurance will provide advice, designs, consultation, training, specifications and the like. Often specialist occupations requiring further study and qualification to undertake. This may include:
If you operate a business as a sole trader or in a partnership, you are not eligible for workers’ compensation (although you will need a policy if you employ anyone). As an alternative, to protect your income (and indeed, your business) in the event of an injury or illness, you should consider a Personal Accident & Illness insurance policy.
Cover can be provided for working hours only, outside of working hours, or both.
If you are the key person in your business and without you the business cannot earn as much or any income without you working, you may also elect to insure your fixed business expenses. Such costs that will continue in the event of your disablement might be: rent; employee wages; lease payments; rent; finance costs; utilities and other such fixed overheads.
Also, you may be covered by workers’ compensation however would like the comfort of having a policy to insure your income outside of working hours.
Did you know:
You are not required to undergo any health or medical checks to obtain
Personal Accident & Illness insurance.
What can it cover:
Cover can typically include:
- Loss of income as a result an injury
- Loss of income as a result of an illness
- Indemnity period generally of 1 to 3 years
- Waiting period of usually 1, 2, 3 or 4 weeks
- Lump sum payments in the event of death or permanent disablement
- Cover for fixed business expenses
- Advanced payments for fractured or broken bones
- Some rehabilitation costs
What isn’t covered:
Other exclusions will apply and you should review any quote received carefully and consider the policy wording for all policy terms, conditions, exclusions and limitations.
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