The role of Accident & Health insurance in employers’ duty of care

Recent geopolitical volatility serves as a timely reminder of how rapidly situations can escalate leaving business travellers vulnerable to unexpected delays in getting home. And in instances where someone has fallen ill or had an accident overseas, these travel delays can lead to mounting medical costs (if someone has an extended in patient stay in an overseas clinic) and related expenses.

Accident and health (A&H) insurance acts as a safety net to protect employees’ health, safety, and security while they are working overseas, traveling, or on international assignments. It’s a tangible way for employers to meet their ethical and legal responsibilities to protect staff and can bridge gaps left by traditional employee benefits and medical insurance.

When companies have colleagues traveling for work purposes they owe them a duty of care. If a colleague unexpectedly falls ill, is injured or even sadly dies while away from home for work, A&H coverage can provide financial protection for a broad range of insured perils from travel disruption to overseas emergency medical expenses to loss of personal possessions. Accidental death is also often included within the cover. It also often covers gaps in standard health plans and provides support for rehabilitation, among other things.

Overseas medical expenses

One of the main risks that A&H policies cover is overseas medical expenses. Costs can escalate very quickly and even fairly simple medical problems can result in a hefty bill.

Treatment for minor ear infections can sometimes cost in excess of €250, and we recently resolved a claim for a patient in mainland Europe with a blocked ear facing medical costs of more than €500, for instance. In some countries, notably the United States, there is no state healthcare coverage available to travellers at all.

Some medical claims require air ambulance evacuations home. This can prove extremely expensive; an evacuation from the Spanish mainland will likely cost over £30,000; from the US East Coast an air ambulance will likely cost more than £115,000; while from the US West Coast the bill will likely top £150,000.

If a business traveller requires urgent care overseas, their employer’s A&H coverage can give not only peace of mind but ensure access to treatment that can aid their recovery. In one recent example, a business traveller had paid for a beach horse ride on a day off. Unfortunately, after the rider dismounted, the horse rolled over in the sand and surf – and onto the business traveller – causing serious leg and pelvis injuries.

The cost of medical treatment in a local clinic was more than £5,000. The patient then required an air ambulance home which cost £50,000.

Our client’s A&H policy covered all of these costs and we are happy to report that the claimant is now recovering at home after further treatment in the United Kingdom.

It’s a tangible way for employers to fulfil their ethical and legal responsibilities to protect staff.

Travel disruption and security evacuations

Although medical expenses are one important area of A&H coverage, the policy can offer much wider assistance for problems that business travellers might face.

A&H policies often can pay a travel delay benefit in cases where flights are significantly later than planned. The airport disruption and flight cancellations in the wake of recent tensions in the Middle East are a recent example of where this benefit can help companies to help their employees.

Unlike in the leisure travel insurance market, where war is often an exclusion in policies, A&H coverage can offer protection for companies whose employees find themselves at risk when a conflict breaks out or escalates.

During the hostilities, many companies sought to bring employees home. Our assistance company partners managed multiple security extractions to a place of safety and continue to do so.

One large client filed a claim to cover the costs of numerous flights that were disrupted as a result of the Middle East conflict; those claims were covered under the travel disruption part of their A&H package.

Beyond the claim

Our claims team takes pride in the fact that when we work on an A&H claim we are moving beyond being a payer to being a partner that is helping our clients to help their colleagues at a vulnerable and often life-changing time.

Even the most innocuous illness can result in significant medical bills. A simple fall can cause injuries that require extensive treatment and rehabilitation. During these moments, our clients can carry out their duty of care towards their employees by ensuring that those medical bills do not become an overwhelming financial burden and that – if needed – the patient can be brought home to receive treatment.

As the risks change, our A&H cover constantly evolves and our focus remains on delivering a first-class service via our claims partners. A&H doesn’t stop at paying a claim; the ongoing support to our clients as they help their employees to not only receive immediate treatment but also rehabilitation and recovery assistance underscores the true value of the policy for clients large and small, across all industries.