Putting the focus on accessible accident and sickness protection for the self-employed
The most recent labour market data released this summer, revealed that there are now around 4.27 million self-employed workers in the UK [1]. This represents 13% of the total number of over 16s in employment in the UK. A sizeable and important customer group for the insurance market.
When it comes workplace accidents and injuries, according to the Health and Safety Executive (HSE), there were 1.8 million UK workers who suffered from work-related illnesses in 2022/2023. At the top of the list of most dangerous industry to work in was construction [2].
Over the three-year period from 2020 to 2023, the HSE found an average of 69,000 construction workers suffered from work-related ill health. Unsurprisingly, over half of these workers (54%) reported musculoskeletal disorders. In the year 2022/2023 nearly half a million workers reported suffering a long-term or new disorders and over 130,000 workers suffered a new workplace related disorder.
Drilling down into the impact on an individual scale shows how difficult it is for a self-employed worker facing time out because of an injury or illness. Data from the Office of National Statistics Labour Force Survey for the same period revealed that, on average, each UK worker suffering ill-heath took around 15.8 days off work. There were 13.9 days lost for musculoskeletal disorder and 6.6 days where they had a worked-related injury [3].
At a time of heighten concerns about the cost of living, an unexpected loss of income from work-related ill health with the loss of work days and income creates additional pressure and some real challenges and risks for the self-employed working population.
Reputation belies the need
The protection sector has its detractors. The mis-selling by the personal protection insurance market with firms fined and consumers compensated in the £billions, dented confidence. The recent announcement by the Regulator that it intends to launch a market study into pure protection insurance products focusing on competition, commission, and value matters, will add further to the concerns about whether products are fit for purpose. What these legitimate concerns and justifiable actions don’t mean is that there is not a need for products to provide relevant and valuable protection.
Access and affordability are key
The current accident and sickness market has yet to address the issue of affordability by providing accessible and relevant short-term protection that meets the needs of the self-employed.
The use of individual and medical underwriting resulting in higher premiums and a focus on longer-term cover in the current products available means that self-employed tradespeople may face the challenge of whether to mitigate the potential risk of an illness or injury impacting on their income with an inappropriate and costly insurance product or take on the risk themselves, leaving them exposed to unpaid bills.
Addressing the gap
Addept Insurance have focused on addressing the gap in low-cost products with the launch of its accident and sickness cover for sole traders and self-employed workers called Bill Ninja.
Bill Ninja is designed to increase access to bill protection cover for self-employed tradespeople and add value to existing sole traders and self-employed workers insurance package products.
Bill Ninja is an accessible, short-term cover that focuses on key benefits with very few limits on particular trades*. Available as a flat rated ‘add on’ to any other trade insurance policies such as tools in transit or public liability. Providing Bill Ninja in this way, avoids adverse selection, which means it can be offered at a more affordable level compared to other alternatives on the market.
The headlines:
Accident only and Accident & sickness options
Up to £500 p/w for 8 weeks
Excess of 7 days
Excludes pre-existing conditions.
To find out more about Bill Ninja and the cover it provides for your self-employed and sole trader clients visit our website
*Some exclusions on particular trades.
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