A simple guide to personal accident insurance

mm Paul Verbiton November 19, 2019
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personal injury broken hand

For a lot of tradies, you have the freedom of being self-employed which means you’re your own boss and can take on as much or as little work as you need. However, it also means that you could suddenly find yourself without an income if you’re unable to work due to injury or illness. To help cope with this uncertainty, you can opt for personal accident and injury insurance. Let’s take a look at what you need to know about personal accident insurance and how it applies to your business.

What is personal accident insurance?

Personal accident and illness insurance means that you’ll continue to receive a portion of your regular income if you’re unable to work due to injury or illness. Most policies will provide between 75% and 85% of your normal wage following a successful claim. These benefits will continue up until you can return to work or until your claim benefit runs out – whichever happens first.

Why is personal accident insurance important?

Personal accident and illness insurance means that you’ll be able to continue to receive an income if you’re unable to work. This allows you to keep up with regular expenses and maintain your lifestyle while you recover. For tradies who often don’t have access to leave entitlements, this cover is particularly important. The physical nature of your work also places you at higher risk of injury compared to other professions and you often need to fully recover to avoid further injury. Personal accident cover means that you can take your time with your recovery without having to rush back to work before you’re ready.

What does personal accident insurance cover?

Personal accident and illness insurance provides cover for loss of income as the result of an illness or injury which is outlined in the policy. Unlike policies such as workers compensation insurance, the injury does not need to have occurred while you’re at work. An injury could be something short term, such as a broken limb, which could see you off work for only a few weeks to something more serious such as an ongoing back injury. There are also optional extensions you can add to your policy if you want additional coverage – speak to your insurance broker for more information.

What won’t personal accident insurance cover?

As with any insurance policy, there are exclusions associated with personal accident insurance. Some common exclusions include:

Pre-existing conditions – you won’t be covered for pre-existing conditions such as heart disease and anything that pre-dates the policy.

Pregnancy – if the injury or illness is as a result of a pregnancy, such as childbirth complications, this won’t be covered.

Intentional or criminal acts – if injury is sustained following an intentional act, such as self-harm, or in the context of criminal behaviour, your policy won’t cover you.

Alcohol and drugs – cover won’t be provided if injury occurred when you were under the influence of alcohol and drugs.

What can I spend my personal accident insurance payments on?

You’re able to spend your personal accident insurance payments on whatever you see fit. Most people opt to spend their payments on regular living expenses such as bills, school fees, car loans, credit cards, rent and mortgage. Your payments can also come in useful if you need to contend with medical bills and rehabilitation costs. The payments can also be used to maintain your general lifestyle and lessen the financial strain on the household while you recover.

How do I find out more about personal accident insurance?

If you want to find out more about personal accident and illness insurance, speak with your insurance broker. They’ll be able to take a look at your specific situation and advise you whether this type of cover is appropriate. Your broker will also be able to find a policy which suits your needs so you’re protected.

An insurance broker specializes in providing easy and convenient insurance cover for tradies. A group buying power means you can find the best price, as well as policies which cater specifically to the needs of tradies. They understand the specific needs of your industry and ensure that your risks are covered for ongoing peace of mind. If you’re not sure what cover should be included in your insurance package, speak with an insurance broker today.

Category: Blog, Health
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Paul Verbiton

I enjoy spotting opportunities and doing my best to grab them if I can. I am eager to see the world, I love taking photos and writing, coming up with topics that are pleasant to read, funny, and interesting at the same time.

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