Group accident insurance as an employee benefit


An accident, much like life, is unpredictable. It can cause an injury to anyone and any time and can cause emotional and financial distress to the injured and their loved ones. A group accident insurance policy softens the financial blow that an injured employee might have to deal with. It is an optional coverage that is offered by employers to all their employees. 


Life is unpredictable. One moment, you’re walking down the same stairs which you use everyday. And the very next, you’ve missed a step and ended with a fractured knee. Sounds painful? It certainly is. And the additional expenses that come with an accident don’t help ease the pain at all. A group accident insurance plan helps employees deal with the unexpected twists (sometimes quite literally) that life throws at them. 

One of the many additions to an employee benefits plan is a group accident insurance policy. Just like group disability and group critical illness benefits, an employee accidental insurance policy can help employees during a difficult time. But what exactly is it and what does it cover? Let’s find out. 

Female insurance advisor in a video call appointment

Need insurance answers now?

Call 1-888-601-9980 to speak to our licensed advisors right away, or book some time with them below.

What is group accident insurance?

A group accident insurance policy pays a lump sum amount to an employee in the event of an accident. This benefit can ease the financial burden of a medical intervention that may be required for an employee to recover. A group accident insurance policy will usually have Accidental Death and Dismemberment (AD&D) benefits—more on this later. 

Apart from the physical strain that an accident puts an employee through, it also causes immense financial stress that they may not be prepared for. A group accident insurance policy can help them and their families with the costs incurred during the recovery process. The payout from a group accident insurance goes directly to the employee, who can use it for hospitalization, medication, rehabilitation or in covering other personal expenses that a provincial health plan doesn’t cover. 

Employee accident insurance plans extend beyond work-related injuries. Any employee covered under this policy will get the benefit regardless of how or where an accident occurs. This means that an employee accidental insurance policy should not be limited to high-risk occupations such as construction workers or truck drivers. It should be offered to employees regardless of their job or occupation.

What do employee accident benefits cover?

Different insurers offer different kinds of coverage under a group accident insurance plan. But most policies cover a range of accidental injuries including:

  • Fractures 
  • Concussions 
  • Burns 
  • Dislocations 
  • Dental injuries 
  • Tendon and ligament ruptures 
  • Accidental death

Group accident insurance policies cover the medical expenses associated with an accidental injury. These include:

  • Doctor visits 
  • Hospitalization 
  • Emergency room charges
  • Ambulance 
  • Surgical procedures 
  • Medicines 
  • Rehabilitation 
  • And more 

Group Accidental Death and Dismemberment (AD&D) benefits

AD&D benefits provide coverage for an employee if they meet with an accident regardless of where they are in the world and whether they’re on or off the job. If an employee suffers any of the losses listed in their policy document, they will get AD&D benefits. An AD&D policy usually has a defined meaning of “accident”. Most insurers define it as a sudden and unexpected event that causes unexpected injuries or bodily harm. 

Group AD&D plans are customizable and employers can build a plan according to their unique needs. These customization options include:

  • Family coverage: AD&D benefits can be extended for an employee’s spouse and children
  • Permanent and total disability: If an employee becomes permanently disabled due to a covered accident, they can claim a lump sum benefit under a group AD&D plan
  • Hospitalization and rehabilitation costs: Employees will get a monthly or lump sum benefit for the duration of the insured’s hospital stay or for rehabilitation expenses such as physiotherapy

How do group accident benefits work?

Typically, the premiums for a group accident insurance policy are paid by the insured employee through payroll deductions. Employees have the option to add their family members to the policy and pay any additional premium to cover the dependents.

Employee accident insurance plans are also often portable so an employee can continue to be covered under this policy, even if they leave their organization. Group accident insurance is a pretty straightforward policy. An insured employee will get a lump sum payout if they meet with an accident and they can choose to use this benefit in any way they want to. Apart from the medical costs, they can also use it to:

✅ Hire child care if required 

✅ Substitute income from missing work 

✅ Home healthcare requirements 

✅And more

Who pays the insurance premium?

The premium for a group accident insurance cover is typically paid by the insured employee. This policy is usually offered by employers as an optional supplemental cover in addition to other benefits. Depending on the insurer and the plan they offer, the premium can vary. 

How is the premium for employee accident benefits calculated?

Different insurance companies have different methods to calculate the premium for an employee accident premium policy. Generally, there are five key factors that can determine employee accident insurance premium rates:

  • Group profile: Insurers will look at the size of the group, the median age of the employees, and the gender. Usually, younger groups with a balanced gender mix are offered better rates than an older group. 
  • Claims history: Insurance providers look at a group’s claim history—a lower claim history will mean a low premium.
  • Risk evaluation: Certain high-risk occupations where the possibility of an accident is higher, can get more expensive premium rates. For example, the employees at a factory where heavy machinery is operated will have to pay higher premium rates as compared to those that work at a data analytics company. 
  • Insured coverage: If the insurance coverage that an employer wants to offer is high, the premiums will be expensive. Lower coverage will also reduce the premium amount. 
  • Riders and other benefits: If employees choose to add riders to their group accident insurance plans, the premiums will also increase.

Benefits of group accident insurance for employees

A sudden accidental injury can lead to financial worries. An employee who is injured in an accident doesn’t only have to think about themself but also their family members who might solely rely on one earning member. As mentioned above, group accident insurance can be of tremendous value in such a time. 

The payout is a one-time lump sum amount that can be used by the employee for anything that will help them during the recovery period. An employee group accident insurance has many other benefits as well:

  • Coverage for 100+ common injuries 
  • Also covers accidental death or dismemberment (AD&D)
  • Quick enrollment with no underwriting 
  • A group accident insurance policy is portable and can be used even if an employee leaves their employer
  • Employees can choose to add their family members to the plan at an additional cost
  • It covers mental health issues that are a result of the accident 
  • Wellness benefits for rehabilitation 

Difference between personal accident and group accident insurance

The key difference between a group accident insurance plan and a personal accident benefit is that the latter covers only the individual who purchases the policy and the former covers a group of employees. The premiums for a group accident insurance can be inexpensive when compared to a personal accident insurance plan. This is because a group plan covers several members of an organization, hence reducing the risk for the insurer. 

Build an employee benefits package with group accident insurance benefits

A group accident insurance policy is usually offered as a supplemental benefit with disability and critical illness insurance plans. Our licensed advisors have years of experience with group benefits packages. Speak to them today to build an employee benefits package that your workers will truly value and that will meet your organizational budget. 

More choice. Lower price.
PolicyAdvisor saves you time and money when comparing Canada’s top group benefits companies. Check it out!

Frequently Asked Questions

What is accident insurance through an employer?

Accident insurance through an employer, also known as group accident insurance or employee accident insurance, is a lump sum benefit that is payable to an employee who has met with an accident. The employee can choose to use the payout from a group accident insurance in any way that they want to.

Why is group personal accident insurance important?

Accidents can happen to anyone and at any time. A group personal accident insurance ensures that an employee can manage the financial stress that comes with an accidental injury. 

What are the benefits of group personal accident insurance?

Group accident insurance policies are customizable, portable, and cover many common accidental injuries. There is no underwriting required and insured employees can also choose to add their family members to the group accident insurance plan. 

How much does employee accident insurance pay?

Different insurers will offer different employee accident insurance payouts. They are generally decided based on the group’s age, gender, claims history, and risk evaluation parameters. 

Do all employees receive the same benefit amount under group accidental insurance?

Typically, yes. All employees covered under a group accident insurance policy will receive the same benefit. Again, this can vary from one insurer to another. 

Need help?
Call us at 1-888-601-9980 or book time with our licensed experts.

  • A group accident insurance policy pays a lump sum amount to an employee in the event of an accident
  • Group accident insurance plans are not limited to work-related injuries
  • Typically, the premiums for a group accident insurance policy are paid by the insured employee through payroll deductions

By Jiten Puri
CEO & Founder, Insurance Advisor, LLQP
Connect with author

Want more like this in your inbox? Subscribe to our newsletter.