An accident insurance policy pays a benefit in the event of accidental injury or death. These policies can vary in benefit amount, and in most cases will exclude certain types of accidents.
Common exclusions include injuries sustained while:
- Fighting in a war
- Playing (or training for) professional sports
- Under the influence of alcohol or illicit drugs
Payments from accident insurance supplement any benefits from other insurance policies. Accident insurance pays a fixed cash amount in the event of accidental injury or death. Unlike health insurance benefits, this money can be used in whatever way the beneficiary chooses.
An injured person who receives an accident insurance benefit may still be able to file a personal injury lawsuit for compensation for additional losses.