Net profits made through the sale of the COVID-19 reimbursement product will be donated to hunger relief charities amid growing food insecurity triggered by unemployment, says Zurich North America
Zurich North America has launched COVID-19 reimbursement product designed to offer cash benefits to eligible employees, hospitalised due to the prevailing viral outbreak.
The insurance firm said that the new product is for employees in hospital for more than five consecutive days because of COVID-19.
According to the company, net profits from the offering will be donated to hunger relief charities amid growing food insecurity triggered by unemployment.
Introduced into the market as a surplus lines policy, the COVID-19 reimbursement product can be availed by large employers, usually with 5,000 or more eligible employees, across most industries.
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 hospitalized for COVID-19.”
The company, which is a subsidiary of Swiss insurer Zurich Insurance Group, said that cash benefits from the new COVID-19 product can help address the financial stresses of prolonged hospitalisation, including costs that may not be covered by primary health insurance.
The North American insurer said that the product offers benefits for hospitalisations beyond the five consecutive days. The benefits of the COVID-19 reimbursement product include an amount per day, which will be subject to a maximum number of days, and an additional lump sum amount following discharge from the hospital.
Individual employees can claim up to $4,000 of benefits from the COVID-19 reimbursement product
Zurich North America said that in total, individual employees can be eligible to claim up to $4,000 of benefits from the COVID-19 insurance programme.
As per the insurer, the employer, who is the policyholder, will first pay cash benefits to the eligible employees. Later on, the employer will have to submit the claims to it for reimbursement.
Zurich US commercial insurance business unit head Paul Horgan said: “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 & Health team.
“It’s a powerful example of speed and collaboration designed to support employers and employees in this time of COVID-19.”