• Activity Business Cover

Why you should consider personal accident insurance if you work in the outdoor or fitness industries


personal accident insurance
Personal Injury

As a business owner operating in the outdoor activities and fitness industries, personal accident insurance could potentially be a worthwhile acquisition, especially if you’re physically involved in the day to day running of the business and are at risk of an accident. Depending on the sums insured, the cost of the policies greatly vary.


Having an accident while at work could mean that it puts you out of action for a while, leaving you unable to work, hence losing your income for the period that you are injured. A personal accident policy would cover your income while you are not working, helping you and your family with bills and other expenses (such as your normal day-to-day living costs).


Personal accident policies, also known as personal injury insurance are written on a ‘benefit’ basis - If you have a valid claim the policy will pay out a benefit amount, either in a tax-free lump sum or on a weekly schedule. Whereas liability policies are on an ‘indemnity’ basis, meaning they are designed to put you back into a position you were in before the loss occurred. Indemnity wouldn’t be possible on a personal accident policy which is why a benefit amount is paid to the insured.


The types of cover would range from accidental death, temporary total disablement or a loss of a limb. A typical example of what type of limits you’d get on a general personal accident policy would be as follows:


1. Accidental Death £ 10,000

2. Total and irrecoverable loss of sight in one or both eyes £ 10,000

3. Loss of one or more limbs £ 10,000

4. Permanent Total Disablement £ 10,000

5. Temporary Total Disablement 75% per week

of the Employee’s normal gross weekly wage during such disablement (not exceeding 52 weeks in all) and commencing 7 days after the date on which the Employee first became disabled

6. Temporary Partial Disablement 40% per week

of the Employee’s normal gross weekly wage during such disablement (not exceeding 52 weeks in all) and commencing 7 days after the date on which the Employee first became disabled


The limits shown above are general of cheaper PA policy and can be extended/increased if higher benefits are sought after. Personal accident insurances can be bought as a standalone policy or as part of a package under your existing business insurance policy. A PA policy will not cover the insured against sickness. However if you believe you are also at risk of sickness, your broker could arrange another type of policy to cover to you.


Generally, a standard personal accident policy would not cover:


1. Injury due to illness or disease

2. Injuries caused by drug or alcohol abuse

3. Injuries occurring from professional sports


From what we have discussed above, it’s evident that personal accident / injury insurance is a worthwhile purchase if you run a business in the fitness / outdoor environment. Making sure your income is covered is vital to securing you and your family’s wellbeing if an injury rendering you unable to work occurs.


If you are thinking of purchasing a personal accident policy or would like to find out more in relation to this, please feel free to call us and we’ll be able to discuss the different options available. Our contact information can be found here https://www.activitybusinesscover.co.uk/contact-us. Speak to one of our experts today.

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