As the employee landscape gets more and more competitive, it’s become increasingly difficult for employers to keep up. Offering a comprehensive suite of supplemental benefits can be a simple way for employer groups to boost their benefits packages.
One of the key offerings brokers should include in their employee benefits packages is accident insurance. In recent years, health insurance premiums have been trending upward,1 while at the same time, high deductible health plans are becoming commonplace. This has made it harder for employees to rely only on their health insurance to help cover medical expenses.2
This is where accident insurance like ours from Wellfleet Workplace can show its value. Employees benefit from the relatively low cost of coverage for a product that can help fill the gaps left by their health insurance. Meanwhile, coverage can be offered at no additional cost to the employer, providing a win for employees without adding expenses to the employer.
In this blog, we’ll discuss the value of accident insurance and why all employee benefits brokers should offer the product to their clients.
What is accident insurance?
Accident insurance is a supplemental health insurance product that provides a payout in the event of an accidental injury covered by the policy. Some commonly covered injuries include:
- Broken bones
- Concussions
- Dislocations
- Burns
- Lacerations
Accident insurance premiums can be attractive when comparing their cost to the helpful financial cushion they provide in the event of an unexpected injury. Especially with many Americans opting for high deductible health plans (HDHP), core medical coverage can still leave members with high medical costs.
Keep in mind, there are also many non-medical expenses when someone gets hurt, such as the cost for food delivery, hiring extra help with chores, and traveling for treatment and follow-up visits. Accident insurance pays benefits directly to the member, which they can use as they’d like, whether to pay for medical bills, mortgage payments, or other expenses.
How accident insurance fills gaps in coverage
Between 2014 and 2023, the availability of high deductible health plans for private industry workers increased from 33% to 55%.3 Many Americans often opt for these health plans because they carry a lower premium than their lower deductible counterparts.
However, HDHPs typically offer limited financial support until members meet their high deductible and out-of-pocket maximum values. Therefore, if a member encounters an unexpected healthcare bill, they may be responsible for a significant expense.
That’s where supplemental health coverage, like accident insurance, comes in. This benefit can help provide a buffer, lowering the financial impact of accidents when they occur.
Impact on retention and recruiting efforts
A supplemental health benefit like accident insurance can help reduce the impact of high out-of-pocket costs of care for employees, thus improving their satisfaction. Offering accident insurance can help increase employee retention while bolstering recruiting efforts.
That’s because, in an increasingly competitive workforce, employees place a high value on competitive, employee-centric benefits packages. With 63% of U.S. workers indicating they’re likely to participate in voluntary benefits,4 the need for a high-quality accident insurance offering is clear.
Minimal direct costs to employers
Accident insurance is an excellent addition to your clients’ benefits packages, not only because of the value these plans bring to employees but because of their minimal costs for employers.
While employers can contribute to premiums if they’d like, many choose to offer fully employee-paid accident coverage, meaning there is no additional cost to the employer. Employees get the benefits of an accident plan, while employers don’t have to take on another expense. It’s a win-win.
Read our guide to see how brokers can harness modern VB trends to produce better results for clients.
What to look for in an accident insurance plan
What characteristics are important in the best accident insurance plans? Not all plans are created equal, and there are a few differentiators that can boost a plan’s value.
Here’s what to look for:
- Technology integration: If you choose a carrier like Wellfleet which is committed to modern technology and an integrated single system for plan administration, brokers, clients, and members can all experience a smoother VB experience. Learn more about Wellfleet’s technology.
- Product customization: Top carriers can provide tailored plans and coverages that can be adjusted based on individual needs. Recognizing that one size does not fit all, this ability to customize can make a world of difference.
- Customer support: You and your clients have a lot on your plate, and managing an accident insurance plan should not be a burden. Choosing a carrier with an impeccable service record and a system designed to simplify the experience is a must.
- Financial rating: You want to recommend a carrier you and your clients can trust will be there for the long term, especially when a claim arises. Wellfleet possesses AM Best’s highest rating, A++ (Superior).5
With industry-leading technology, customizable plan options, and unwavering financial stability, Wellfleet is a carrier partner you can trust.
Learn more about Wellfleet’s Accident Insurance
Learn more about how accident insurance from Wellfleet can help improve your benefit offerings. Connect with our team to create a customized plan for your client.
References
1 Johnson, SR. (2023, Oct 18). U.S. Health Insurance Premiums Rise 7%, Near $24K for Family Coverage. U.S. News & World Report. https://www.usnews.com/news/health-news/articles/2023-10-18/health-insurance-premiums-rise-7-in-u-s-survey-shows.
2 What is accident insurance and is it worth it? Assurity. https://www.assurity.com/news/what-is-accident-insurance.
3 (2024, April 11). High deductible health plans and health savings accounts. U.S. Bureau of Labor Statistics. https://www.bls.gov/ebs/factsheets/high-deductible-health-plans-and-health-savings-accounts.htm.
4 Hart, W. (2022, Nov 18). Survey shows more workers are taking advantage of voluntary benefits from their employers. Benefits Pro. https://www.benefitspro.com/2022/11/18/survey-shows-more-workers-are-taking-advantage-of-voluntary-benefits-from-their-employers/.
5 For latest ratings, visit ambest.com
Wellfleet, Wellfleet Student, Wellfleet Special Risk and Wellfleet Workplace are marketing names used to refer to the insurance and administrative operations of Wellfleet Insurance Company, Wellfleet New York Insurance Company and Wellfleet Group, LLC (known in California only as Wellfleet Group, LLC dba Wellfleet Administrators, LLC). All insurance products are administered or managed by Wellfleet Group, LLC. Product availability is based upon business and/or regulatory approval and may differ among states.
