Zurich North America launches Covid-19 cash reimbursement product

A reimbursement product for employers to provide cash benefits to eligible employees hospitalised for more than five consecutive days as a result of Covid-19 has been launched by Zurich North America.

The insurer said that in the US, “net profits from the offering will go to hunger relief charities, at a time of rising food insecurity fuelled by unemployment”.

The product is available to large employers, typically with 5,000 or more eligible employees, in most industries, and has been brought to market as a surplus lines policy.

Zurich North America CEO Kathleen Savio said: “This new offering is one way we can help support the resilience of employers and employees coping with coronavirus impacts. We want to enable employers to provide financial assistance, beyond medical benefits they may provide, to eligible employees hospitalised for Covid-19.”

According to Zurich, the employer, who is the policyholder, pays cash benefits to the eligible employees, then submits its claims to Zurich for reimbursement. It said the cash benefits can help with the financial stresses of an extended hospitalisation, including costs that primary health insurance may not cover. Benefits are provided for hospitalisations exceeding five consecutive days and include an amount per day (subject to a maximum number of days), and an additional lump sum amount upon discharge from the hospital. In total, individual employees may be eligible for up to $4,000 of benefits.

Paul Horgan, head of Zurich’s US commercial insurance business unit, said: “Seeing the unfolding impact of coronavirus, we developed this product swiftly with input from our brokers and customers, the global Zurich organisation and our accident and health team. It’s a powerful example of speed and collaboration designed to support employers and employees in this time of Covid-19.”

Back to top button