Zurich North America has announced the launch of a COVID-19 reimbursement product for employers to provide cash benefits to eligible employees hospitalized for more than five consecutive days as a result of the virus. In the US, net profits from the offering will go to hunger-relief charities.
The COVID-19 product, a surplus lines policy, is available to large employers – typically those with 5,000 or more eligible employees – in most industries, Zurich said.
“This new offering is one way we can help support the resilience of employers and employees coping with coronavirus impacts,” said Kathleen Savio, CEO of Zurich North America. “We want to enable employers to provide financial assistance, beyond medical benefits they may provide, to eligible employees hospitalized for COVID-19.”
The cash benefit can help employees cope with the financial stresses of an extended hospitalization, including costs that may not be covered by primary health insurance. Benefits are provided for hospitalizations exceeding five consecutive days, and include an amount per day (subject to a maximum number of days) plus an additional lump-sum amount upon discharge from the hospital. In total, individual employees may be eligible for up to $4,000 in benefits. The employer, who is the policyholder, pays cash benefits to the eligible employees and then submits claims to Zurich for reimbursement.
“Seeing the unfolding impact of coronavirus, we developed this product swiftly with input from our brokers and customers, the global Zurich organization and our accident and health team,” said Paul Horgan, head of Zurich’s US commercial insurance business unit. “It’s a powerful example of speed and collaboration designed to support employers and employees in this time of COVID-19.”