Overview: Accidental Death and Dismemberment Insurance (AD & D) is a supplement to life insurance that pays the family of a victim who died in an accident. It also covers individuals who lose a body part or their eyesight in an accident.
There are some exceptions to coverage under this type of insurance. For example, if an accident occurs while the covered individual is under the influence of drugs or alcohol, the coverage will likely not be upheld.
AD & D is good for employees in dangerous jobs or jobs that require a lot of driving. AD & D is often included as part of a Group Life Supplement and Business Travel and Accident Insurance plan.
Ashley Shaw, JD, Legal Editor
This section helps HR professionals understand the value of offering certain insurance benefits, such as life insurance, accidental death and dismemberment (AD&D) insurance, short-term and long-term disability benefits.
Employers seeking to identify which employees may be eligible for group life insurance and the types of life insurance available to them should consider including this model policy statement in their handbook.
Employment glossary definition of AD & D (Accidental Death and Dismemberment) Insurance.
HR guidance on acquiring accidental death and dismemberment insurance.