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Blanket Occupational Accident Insurance Reduces Risk of Catastrophic Claims

In today's world, your company faces a very real risk that a large percentage of your workforce could be injured or even killed in a catastrophic event related to workplace violence, terrorism or natural disaster.

  • Do you have a large concentration of employees at a single site?
  • Does your industry have a higher risk of catastrophic accidents?
  • Do you self-insure a portion of your workers' compensation insurance? 

If you answered yes to any question, you have a potential exposure that HUB International can help you address in a cost-effective way.

HUB clients who have a large workers' compensation self-insured retention (before any insured benefits become payable), are finding an inexpensive way to offset the exposure through traditional AD&D products.  In this case however, the employer is the beneficiary and is reimbursed for losses.

Blanket Occupational Accident Insurance (BOAI) is a workers' compensation deductible reimbursement product that limits a company's exposure against catastrophic workers' compensation claims.  The BOAI policy will reimburse a company, up to predetermined limits, for workers' compensation claims that result in death, dismemberment and paralysis/loss of use.  This insurance product allows companies with high workers' compensation retention limits to insure their exposure against claims that would require large payouts within the underlying deductible amount.  With the product in place, any workers' compensation payments made under the deductible amount resulting in a catastrophic loss are reimbursed back to the business.

Employers who have purchased traditional AD&D group insurance are familiar with its inexpensive premium structure and 24-hour coverage (on or off the job).  When the AD&D exposure is narrowed to "occupational only" under the BOAI concept, the premium may drop even more. 

If your company is considering self-insuring a portion of your workers' compensation, or currently does so, you can use Blanket Occupational coverage to:

  • Provide first-dollar coverage for accidental death, dismemberment, and paralysis at customized limits
  • Help to insulate the employer's balance sheet by minimizing catastrophic exposures
  • Reduce the credit requirements imposed by your excess workers' compensation carrier
  • Strengthen your chances of approval by a state workers' compensation board
  • Provide insurance protection against future losses by improving cash flow and replenishment of your claim payment funds
  • Raise your deductible limit to reduce your excess workers' compensation policy premiums
  • Pay benefits to the employer

The placement of an inexpensive supplemental policy provides the best of both funding options.  Companies are able to save on their workers' compensation premium by purchasing a high retention plan, while using the BOAI to alleviate the severe dollar claims.  

Talk to your HUB insurance advisor about Blanket Occupational Accident Insurance.

Dennis Donahue is the Executive Vice President and Employee Benefits Practice Leader for HUB International Midwest.