Accident insurance is one of most popularbenefits in the worksite market and has appeal for most groups.

The traditional school of thought has been that it appeals moreto blue-collar groups because of its relative affordability and thelikelihood that those particular employees engage in activitiesthat might be more likely to lead to an accident. Of course, asanyone with children will tell you, accidents can happen to anyfamily regardless of income or job description. As a matter offact, our recent anecdotal experience has proven the appeal ofaccident coverage to everyone.

Certainly, this is partially due to specific product design.There are primarily two types of accident coverages: indemnityproducts with which the broker community already is very familiarand a lump sum accident expense product, which pays up to apredetermined face amount for any expenses incurred because of anaccident. Both offer 24-hour coverage or off-the-job coverage.

Both obviously have their advantages. The traditional individualindemnity product is in most every major and minor worksitecompany's portfolio. They pay on a schedule for any particularinjury caused by accident (e.g., $50 for a broken finger, $100 fora dislocated shoulder, etc.). Most of these products areinterchangeable as one company's products will pay more for oneevent and another company's policy will pay more for another.Premiums all tend to be in the same ballpark. Group accident plans,however, offer a lot more flexibility on price and product designs.Some even offer a sports injury rider, which is extraordinarilypopular with parents. Right now, there are some carriers with groupaccident plans that are saving employees premium dollars bymatching current plan designs while offering a lower cost. When HRdepartments are less inclined to change their deduction amountsthey're increasing their benefits.

The accident expense products are a slightly different concept.They are designed mostly to help employees to cover theirdeductible when an accident happens. They cover the expense of theaccident up to the predetermined face amount. For example, if anemployee has a $5,000 plan and has $3,700 of expenses due to anaccident, they get paid a check for $3700. In most plansthey stillhave $13,000 left for the calendar year for other accidents.

What we've found is that this type of product has a lot ofsuccess separate of any major medical coverage as it pays the lumpsum regardless of what one's major medical deductible is. It's easyto see the appeal of this plan for any type of family, butespecially one with a higher deductible health insurance plan. Mostaccident expense plans in the worksite are following the trend ofbeing on a group chassis, which again, gives the carrier someflexibility.

In addition, there are some accident plans that have sicknessriders that can be attached which can give workers who can't affordshort term disability at least a little coverage. If you believethe philosophy that a little coverage is at least better than nonethis is an option. While falling far short of a traditionall.Disability plan it can certainly help lower paid workers. That saidit must always be properly communicated that it is not a disabilityplan. We have from time to time been called by a group becausetheir broker misrepresented just such a plan.

It's obvious there are employees of all stripes that reactfavorably to the right type of accident coverage. That said, we'vefound more success in certain types of groups. Recently, we've seena huge increase in a percentage of our business gravitate towardsaccident coverage in states and municipalities, as well asassociation business, security guards and moderately paid employeesjust to name a few. Again, though almost every group is reactingfavorably to one accident plan or another and participation on avoluntary basis has been extraordinarily high.

As was mentioned, almost every carrier has some sort of accidentproduct on the market. Some have more than one. Finding theproducts that separate themselves from the pack can be a dauntingtask given their similarities but when you find it, and the carrieris willing and capable of providing excellent service, specificallywith regard to claims, it can give you a competitive advantage whenmixed with the right overall portfolio. Sometimes those carriersmight not be who you were expecting either, so be sure to find theplan that stands out in a crowd.