General Insurance Article - Personal Accident cover is hit and miss for SMEs

 In the survey, Ageas found that 40% of firms have experienced a member of staff being off work due to accident or ill health for more than two weeks in the past year but only 61% of all the SMEs surveyed have PA cover and in most cases, cover is only provided at Executive level[2]. Proving the need and value of the cover, 53% of the respondents have made a claim under a PA policy.

 Sole-traders or micro SMEs[3] where an absence due to accident or ill health is most keenly felt were least likely to have PA cover. The tipping point for take up is when firms reach 76-100 people. According to the survey, this is the group most likely to have cover – and they were also the group most likely to employ members of their family.

  

 Neil Thunström, PA Underwriting Manager comments:

 “The survey was conducted to highlight the opportunity of Personal Accident cover for brokers serving the growing SME community.

 ‘It’s good news that businesses are growing, but they need to invest in their people in the same way they invest in plant and machinery. The staff on the shop floor are just as critical to the day to day operation of a business as those at a more senior level.

  

 “Personal Accident cover is not complicated, it offers protection 24/7 worldwide and there are few occupational limits. The claim payments can be used to recruit and train a new member of staff, cover the cost of temporary staff, adapt the workplace or home or supplement statutory sick pay. It’s the business who decides how the claims money is spent. With businesses investing and expanding, the time is right for brokers to promote the value of PA cover.”

  

 Optima Personal Accident Business from Ageas meets the needs of the SME and micro-business sector that have very specific requirements. From just £250 per year, the product is accessible to the smallest of businesses, and is designed to provide protection to the key people should accident or ill-health prevent them from working at a crucial time in the growth of the business.