Accident and Health Insurance: What Schools, Colleges and Universities Looking to Bolster Their Coverage Need to Know
When it comes to choosing the right accident and health coverage for a school or higher education facility, there are several components to review. That’s because accident and health can refer to a number of different things.
“It can include employee benefits, health insurance, disability, dental and vision. It can include accident insurance for a whole host of different types of groups that are not employee/employer related,” said Michael Flood, Vice President, Accident & Health Division, Philadelphia Insurance Companies.
Within that non-employee/employer related bubble, accident and health can be broken down further into three major categories: participant accident, student accident and intercollegiate sports accident.
Participant accident pertains to coverage offered to nonprofit organizations that employ volunteers who don’t fall under a traditional workers’ compensation policy as well as a host of other non-school based organizations that sponsor activities such as camps & clinics, childcare facilities and special events. Student and intercollegiate sports accident both provide a level of coverage for students injured while participating in school-sponsored activities and sports.
“That first category, the participant accident category, is a highly profitable niche. The loss ratios tend to be quite low.” Flood explained. “For the K-12 and college and university student accident segments, claim frequency is higher. The seriousness of claims, especially for high school and college sports, also tends to be more serious. Due to the higher frequency and severity, the margins are tighter.”
The intercollegiate sport accident exposure is the most difficult to underwrite. Claim activity is the most volatile and loss ratios can be exceedingly high.
For schools and higher education facilities looking for accident and health products, here’s an overview of where the market stands and how organizations, especially schools, can benefit.
To learn more about Philadelphia Insurance Companies, please visit their website.