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Guide to Personal Accident Insurance: Everything You Need To Know

By Darragh Timlin on January 14th, 2021

Also known as personal injury insurance, personal accident insurance provides compensation to anyone left injured and unable to work due to an accident. This level of insurance usually also covers death, ensuring that your family won’t be forced to foot any bills or clear outstanding debts in your name. Personal accident insurance can be the very policy that prevents you and your family from falling into any debts or not being able to put food on the table. Consequently, it makes sense that you’d want the most comprehensive coverage possible, at the most affordable price. Here, we’ll take you through everything you need to know about personal accident insurance policies.

What is personal accident insurance?

A personal accident insurance policy will ensure that you and your family remain financially protected if you’re ever left unable to work and earn a living due to an injury or death. Although life insurance will pay out in the event of death, accidents such as a broken leg may leave you unable to work for an extended period of time and, if you’re self-employed, could prevent you from being able to earn an income. In more extreme circumstances, you may be left permanently disabled and unable to work again, leaving you dependent on your personal accident insurance.

Generally, in order for your accident to be covered by personal accident insurance, it needs to be the result of “an unforeseen or unexpected and unfortunate occurrence”. This means that if you’re injured due to a sickness, you won’t be financially covered. Personal accident insurance may be included in other insurance policies you take out, but it’s always best to make sure that the cover included is the cover you need.

What is covered by personal accident insurance?

Personal accident insurance covers a range of accidents and injuries, including:

  • An accident or injury that took place in the workplace
  • Criminal violence
  • Road traffic accidents
  • Injury from slips and spillages
  • Amputations caused as a direct result of an accident, whether immediately or as a final treatment
  • Paralysis in a body part

It’s also important to remember that some factors will affect your compensation and whether your claim will be accepted or rejected, regardless of how severe your injuries are. These include:

  • Injuries that are self-inflicted, whether intentional or through reckless behaviour
  • Injuries caused as a result of substance abuse, including road traffic accidents while under the influence of controlled substances
  • Injury due to an existing sickness or disease
  • Injuries sustained while training if you’re a professional sportsperson
  • Injuries sustained due to participating in criminal activity
  • Injuries sustained in a war
  • Injuries caused as a direct result of radiation or nuclear accidents

Who needs personal accident insurance?

You might not think you need personal accident insurance, but depending on the type of career you’re in, it’s a policy you should carefully consider. For example, if you’re self-employed and in charge of your own income, rather than having a set salary, you should consider taking out a personal accident insurance policy.

Even if you’re an employee, it may well be worth taking out your own personal policy rather than leaving it for your employer to handle. The kind of careers where this will be helpful include:

  • Those who are self-employed, sole traders, or freelancers
  • Any profession that involves the regular use of heavy and potentially dangerous machines, plant, and/or substances, including construction workers
  • Drivers who make particularly long trips, including couriers and food delivery drivers
  • Professions where risk of violence is high, including security and prison staff, bouncers, and the police

There are three main kinds of personal accident insurance you can get, depending on your needs.

Accidental death

This policy keeps your partner or family financially supported in the event of your death from an accident. Your family will usually get this in a single lump sum following the claim.

Accidental permanent injury

This policy ensures you receive a payment if you suffer a permanent injury, including the loss of a limb, sight, or hearing, as well as becoming disabled

Family personal accident plans

You may wish to extend your cover so your immediate family is protected. This is helpful if you have children or a spouse or parent that need this kind of cover.

How much does personal accident insurance pay out?

The amount of money you’ll receive from a claim depends on the severity of your injury. For example, if you’ve broken a limb and will be left out of work for a few months while you recover, you’ll need far less financial support than someone who has been left partially paralysed for life. Your insurance provider will be able to outline compensation when you make a claim. You may even be able to claim expenses for any medical costs incurred as a result of your accident, such as physiotherapy for a broken limb. However this will depend on the severity of your injury, and the policy you hold.

How much personal accident insurance do I need?

You can decide how much personal accident cover you want or need, depending on your own personal lifestyle and the risk of sustaining a permanent injury. If your job activities have a higher potential for causing an injury that could leave you disabled, it’s definitely worth taking out a higher policy. However, if the risk is significantly lower, then you could take out a less expensive policy, saving you money on your monthly premium rate while still giving you all of the cover you require.

How much does personal accident insurance cost?

The cost of your personal accident insurance depends on a number of factors, including how much cover you need, and what your professional lifestyle is like. Monthly premiums range from a few pounds up to around £20. Other factors that could be taken into account include your age, claims history, and the equipment you’ll be likely to use on any given day.

Quickly compare personal accident insurance quotes depending on your needs by getting in touch with Brisco Business for a free quote today. At Brisco Business, we prioritise building long-term relationships with our clients by offering exceptional customer service and reliable business insurance solutions.

Darragh Timlin

With over 25 years’ experience, Darragh is an expert in all things insurance. Starting his career in commercial property underwriting, Darragh has worked for a number of global insurers and is now Managing Director of Brisco Business, part of the wider Henry Seymour Group.

All articles by Darragh Timlin

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