Insurance For My Nonprofit  

What is Accident Coverage?

Volunteer or Participant Accident Coverage, also known as Accident Medical Reimbursement Coverage is coverage that provides reimbursement for medical treatment, hospitalization and licensed nursing care; dental care or repair and replacement of dentures; and for repair and replacement of eyeglasses. It also includes benefits for accidental death, and loss of limb and sight. Limits of up to $25,000 or $50,000 per covered accident are generally available. Accident policies, other than those for work-release participants, are often available with no deductible.

This insurance is available on an excess basis; that is, coverage is in excess of Medicare, Medicaid or any supplemental insurance the volunteer has.  If there is no such insurance, the coverage becomes primary.

Pricing for an accident policy is typically based on the number of service volunteers at your organization. The nature of the work your volunteers perform may affect availability and pricing.

Deductible — Amount deducted from a loss. The deductible is an amount assumed in advance by an insured as required by the insurance company or as a means of obtaining a lower premium for the coverage. Also, the amount of the loss that the insured must pay.

Insurance — Traditional risk-financing tool used to transfer the financial hazard of risk. An insurance policy spells out what is or is not covered caused by all or specific perils (causes of damage or injury). Insurance is also a contract whereby an organization agrees to indemnify another and/or to pay a specified amount for covered losses in exchange for a premium. For many nonprofits, insurance provides the funds to pay for the nonprofit’s unexpected losses of people, property and income, while ultimately keeping the organization in operation.

Accident — Unexpected or chance event. This term is frequently defined in older commercial general liability (CGL) policies.