Adding to AD&D policies: the shortcomings of AD&D policies can cost unsuspecting policyholders dearly, one expert argues. The best way to avoid getting into trouble is to review the policy with a fine-tooth comb.

Every day, employees and family members face the potential for injury or death resulting from anything from common falls and automobile accidents to acts of terrorism and war. Employers are susceptible to large-scale losses from catastrophic events, such as terrorist attacks, that can affect many employees at once. Managing this risk requires significantly more than having an accidental death and dismemberment insurance policy in place. It requires in-depth knowledge of your company's business travel and 24-bour AD&D exposures, domestically and internationally. Accumulation issues and dynamic exposure levels in particular regions must be contemplated. Your company must be poised to respond, with insurance and a meaningful crisis response, to mitigate damages from events that can be as devastating as they are unpredictable. In essence, your company must now manage AD&D risks as strategically as it does any other substantial threats to operations and assets. Is your company up to the challenge?
The points outlined below provide an initial checklist for companies preparing to meet this challenge. They illuminate the shortcomings of current approaches to managing AD&D risks--and key elements that can strengthen the process.
Steps to Follow
Simply attaching AD&D coverage to your group life policy is not sufficient. Life insurance underwriting is clear-cut and data-driven; accident insurance requires a high degree of customization. AD&D risks can have disastrous consequences for your organization; they merit careful management by underwriters with substantial technical expertise. Life insurers typically don't have this AD&D expertise.
Many stand alone AD&D policies and AD&D riders fall short in addressing your greatest risks: terrorista and war. Be sure these potentially catastropbic events are covered under your AD&D policy. Also assess your exposure and accumulations in these areas regularly and ensure that your organization is prepared to respond to manage the aftereffects of such events. Having specialized resources available to manage your AD&D risks is critical. Beyond broad insurance protection, an AD&D insurer should provide proven, high-quality travel assistance and claims management services, customized to help your company and employees weather a crisis.
Your AD&D insurer has its own catastrophic exposure to manage. The carrier must be financially strong and actively manage its own balance sheet exposure, particularly accumulation exposure, to sustain its strength long term. Reinsurance is vital to this effort. So, don't hesitate to inquire about your carrier's reinsurance arrangements, including support in potentially catastrophic areas such as chemical, biological or nuclear events.
When an AD&D claim occurs, both human and contract issues must be addressed. AD&D claims are often the result of tragedies, with distraught family members involved. Make sure your AD&D carrier has the specialized claims staff and resources to respond sensitively to the multi-faceted issues involved in these cases, and has a record of making claim payments quickly. Responses can vary significantly. After an airline crashes, leaving no survivors, a carrier could withhold claim payments until death certificates are processed, often taking several months. Or, it could pay promptly. Be aware of the vast differences in claim protocol when you choose your carrier