Brokers servicing the SME sector are missing revenue in personal accident insurance (PA), according to a survey by Groupama Insurances.
The survey of over 4,000 commercial brokers revealed only 37% of brokers actively promote PA to their clients. In the survey 61% of brokers said they believe that PA cover is difficult to sell and 72% said that businesses do not understand the value of PA cover.
Neil Thunström, head of personal accident and travel at Groupama Insurances said: "The misconception amongst brokers that PA cover is difficult to sell is a worry. The reality is that it is basic asset protection.
"As many businesses have cut back their workforces during the past year, a smaller team, where each member is proportionately even more important, must be better protected. PA is a product very much for today's tough commercial environment."
Groupama noted PA policies have no rules about the number of employees or size of premium and the benefits can be delivered in a number of different ways.
A policy can provide lump-sum payments in the event of accidental death or injury or temporary benefits to cover an employee being absent from work for a few weeks. Cover can apply either on a 24-hour basis (covering employees at all times), or on a selected ‘operative time' basis set by the business.
Thunström added: "There is also a mistaken belief that there is an overlap between Group PA cover and PMI. There is not. The key difference is that with PMI the employee receives the policy benefit in the form of treatment.
"With PA, the policy is also taken out by the business and it is the employer that receives a cash benefit if an accident or sickness occurs to an employee. The fact is, PA is excellent value and has never been more relevant for businesses today."
Personal Accident insurance can help cover the cost of:
• Maintaining weekly payments to an employee
• Training replacement employees
• Buy out of a partner(s)
• Hiring a replacement for an injured person
• Funding over-time
• Business interruption protection
• Loss of key employees
It can also help businesses to:
• Protect any employers liability cover with automatic payments to injured/sick employees
• Top up/fund death in service benefit
• Supplement PHI cover
• Continue to meet work commitments
