GWI’s Group Accident division focuses primarily on underwriting, sales and administration of corporate Accidental Death and Dismemberment (AD&D) insurance coverage, through independent agents, brokers and consultants. The coverage is typically found in the following policy forms:
- Business Travel Accident
- Voluntary Personal Accident
- Basic Accident
- Carve-Out Accident
- Travel Assistance
Business Travel Accident (BTA) provides high limit AD&D coverage on employees traveling on behalf of their employer. The premium is always employer paid and the beneficiary is typically named by the employee, usually their spouse or family.
Amounts of coverage usually range from $10,000 to $500,000 and will often exceed $1 million for executives. Classifications of employees usually (but not always) denote what limits the employee receives in coverage and normal discrimination rules do not apply. Also, a typical plan may provide 24-hour business and pleasure for executives, while the rest of the employees receive coverage for Business Travel Only. Thus, a high degree of flexibility resides in constructing BTA coverage.
Voluntary Personal Accident Insurance
Usually referred to as Voluntary AD&D, this coverage is offered to the employee on a voluntary basis, where they may cover themselves and their family, while selecting limits of coverage. The employee is not limited by pre-existing conditions, age rated premiums or evidence of insurability. They pay for the coverage with affordable group rates that are payroll deducted, naming their beneficiary of choice.
Due to the low cost of coverage relative to Group Life, the employee has the opportunity to purchase very high limits of AD&D coverage compared to the amount of Group Life coverage they select or are limited to, for various reasons including their health or policy limitations. As a result, Voluntary AD&D plans achieve in excess of 60% participation and are considered a popular, economical benefit.
A Basic Accident Plan is primarily an underlying amount of AD&D coverage that is employer paid. It compares in many respects to BTA coverage, in that it may be class differentiated for limits, or may be a flat amount for all employees. The coverage is always 24-hour coverage, regardless of on or off the job exposures. Families are typically not covered under Basic AD&D plans. The employee usually names his or her own beneficiary. A Basic Accident plan is an excellent way of an employer providing high limits of coverage at reasonable premium rates.
Carve-Out plans are very similar to Basic AD&D plans, except the amount of coverage is derived from “carving-out” the AD&D rider from the Group Life insurance coverage, and writing it as a separate policy. Reasons for doing this are:
- The coverage may be superior to a typical AD&D rider.
- The rate is often lower, due to the pooling of AD&D coverage vs. experience rating.
- The commission is usually higher as compared to lower commissions from a Group Life & AD&D combined contract.
The practice of carving-out the AD&D rider on a Group Life contract is an excellent strategy to increase a broker’s commission while improving his client’s coverage and cost, all without soliciting new business.
Travel Assistance provides help to an employee whenever he or she is more than 100 miles away from their home, whether the need is medical or legal in nature.
Travel Assistance Plans, long popular in Europe, have been a luxury that only the largest corporations in America were able to afford, despite increased employee travel. Only recently were Travel Assistance Plans made affordable by teaming-up with Business Travel Accident Insurance Programs.
When companies are suddenly faced with a traveling employee’s emergency, be it medical, legal or other complication, many are not prepared to provide a workable solution and usually try to solve the crisis with money. As powerful as money is, it can’t get the traveling employee to the right physician or attorney if they don’t know where to turn or who to call. That’s why a good assistance company will not only know what to do, but will actually take over and solve the crisis.
