What is Personal Accident insurance?

builder in accidentOne of the easiest insurance policies to understand is personal accident insurance. Very simply, if you have an accident which stops you working and you cannot earn any money, the insurance policy will pay you money instead.

Do not confuse personal accident insurance with PPI (personal protection insurance) which was famously mis-sold by banks. PPI insurance is a package of insurance to cover illness and unemployment and was sold to unsuitable people such as the unemployed, retired, pre-existing medical conditions and contract workers.

Are there other types of personal accident insurance available?

There are a wide range of products in the market that at first glance appear very cheap. However, many of them only offer hospital benefits, death cover or complete disablement.

If you are self employed or are employed but will only be paid for a limited period we recommend that your buy the type of personal accident policy that pays weekly benefits to working people when they are unable to work.

However, don't insure for too much – you mustn't be better off claiming from your insurance policy than you are working!

We have other useful insurance guides:
Personal Accident Insurance | Building Warranty Insurance | Structural Warranty Insurance | JCT Insurance | Contractors All Risks | Contract Works | Public Liability | Land Liability Insurance | Professional Indemnity | Renovation Insurance | Self Build Insurance