What you need to know about accidental death and dismemberment (AD&D) insurance for your business.
While many business owners offer their workers life insurance as part of their employees’ benefits packages, have you ever considered offering accidental death and dismemberment (AD&D) insurance as well? Here’s what AD&D insurance can do for your business.
What is AD&D Insurance?
As the name suggests, AD&D insurance offers compensation if your employees are accidentally killed or face dismemberment. Generally, this type of policy is meant to be added as a rider to a life or health insurance policy. Typically, this type of policy will offer coverage if death or dismemberment is the result of accidental or unavoidable circumstances such as an auto accident, murder, fall, drowning, or accidents involving machinery. Dismemberment refers to the physical loss or the loss of use of a body part or function (such as the loss of a limb or the loss of eyesight, speech, or so on).
How Does This Coverage Work?
This type of insurance works in tandem with life insurance. This means that if an employee dies as a result of an accident, their loved ones would receive compensation from the employee’s life insurance policy and their AD&D policy.
Are There Exclusions?
As with any other type of insurance policy, there are some situations that are excluded from receiving AD&D coverage. Common AD&D exclusions include the following:
- Death resulting from suicide
- Death resulting from illness or other natural causes
- Death resulting from overdose
- Death resulting from accidents that take place while under the influence of nonprescription drugs
- Injuries sustained during combat
This what you need to know about accidental death and dismemberment (AD&D) insurance and how this coverage could help your employees. Interested in learning more about your business’s insurance options? If so, contact the experts at Contractors Insurance Agency. We are ready to assist you with all your commercial coverage needs today.