Author, Chase Hixson, Account Executive, Human Services Group, Rancho Mesa Insurance Services, Inc.
Organizations like nonprofits, schools, home health care facilities and other entities that rely on volunteers or frequently interact with the public, may be vulnerable to accidents not covered by workers' compensation insurance. These accidents can cause an unexpected financial burden on the organization if they don't have an accident policy.
What is an Accident Policy?
An accident policy offers a specified dollar amount, typically between $10,000 and $50,000, to cover medical costs to qualified participants in the event of an injury. They are fairly inexpensive and offer an added layer of defense, should an accident occur. Typically, these policies cover volunteers and/or students (for schools), and they are written on a no-fault basis. While most general liability policies require a liable party in order to pay out, accident policies pay out quickly and efficiently.
It’s important to note that these policies only cover medical costs. If the injured party were to seek legal action against your organization, your liability policy would respond.
Example of a Covered Event
If a student falls down on the playground, breaking an arm, the school has an accident policy that covers all students, providing $15,000 for each incident. The student's medical bills total $12,000. Neither the school nor the child’s parents would end up paying any money out of pocket for the accident.
Advantages of an Accident Policy
Accidents, by nature, are sudden and unexpected, as are the associated medical costs. An accident policy can reduce those financial burdens and give peace of mind knowing there is a set amount of money readily available should something go wrong.
In addition, an accident policy can help reduce the likelihood of future lawsuits. While any accident can result in subsequent legal action, there’s a greater likelihood of litigation if the injured party receives a large medical bill.
Mitigate the Financial Burden
Accident policies are a great option for those who have volunteers or students in their care. They are inexpensive and offer an added layer of financial protection that can provide significant financial relief in the wake of an accident.
Please feel free to reach out if you have any questions, and we can determine if an accident policy is the right fit for you.