Life Insurance For Offshore Workers
We are pleased to announce that RigBaby has teamed up with specialist insurance brokers, the Special Risks Bureau, to provide assistance in placing insurance policies such as Life Insurance, Critical Illness Cover and Income Protection
Whether you are insured already or buying insurance for the first time it is important to be aware of how working offshore could impact your insurance. The Special Risks Bureau have kindly put together some of their most frequently asked questions with helpful answers below.
Please feel free to click a question below to see their answer.
Will I pay more due to working offshore?
Everybody’s individual circumstances differ so your insurance premiums will be based on your smoker status, age, health and any additional risk factors such as lifestyle. In terms of an individual’s occupation however we have been able to place most life and or critical illness plans at standard terms, this means no price increase and no imposed exclusions. Each insurance company assesses risk differently and we have years of experience placing offshore workers so know where is best to apply for each person.
What if I work at heights?
Rope Access Occupations or those involved working at significant heights above deck are normally fine to cover. While each case is considered on its own merits the terms available often cost the same as standard offshore occupations if the right insurers are approached.
I’m not based in UK waters, does this matter?
This will depend on amount of time spent in each country and which countries it is. Often people working 4 weeks on/4 weeks off can get cover without issue regardless of location. People however who are expecting to spend significant time in higher risk countries with trips lasting more than a month may be offered higher premiums.
What if I am already insured?
If you are new to the offshore industry but already have cover in place the good news is that most policies are unaffected as they only assess you when you buy the plan.
You will usually find that policies taken out when you were younger are cheaper than those available for your current age so don’t rush to scrap your old policy if you don’t have to!
Just be aware some of the older policies also have exclusions relating to war or terrorism and there can be restrictions as to what countries in the world can be claimed in.
If you are in any doubt contact your insurer or the broker who arranged your cover and ask them to outline any potential pitfalls.
What cover is available?
Insurance is a tricky subject to approach at the best of times but it’s important to know your options before you decide whether it’s a sensible route for you. Examples of cover available are:
Life Cover – this pays a tax-free benefit to your family should you die or are diagnosed terminally ill (where death is expected with 12 months).
Income Protection – this plan provides a monthly benefit if you are ill or injured and cannot go to work and can pay you until you retire.
Critical Illness Cover – this provides a lump sum payment if you suffer from a very serious illness or life changing injury.
What about the ‘small print’?
The terms you are offered can vary wildly dependent upon your duties, the location of the rig and your health. For life insurance and critical illness it is rare that people are offered special terms (such as premium increases or exclusions), for plans such as Income Protection however it is more likely as your occupational duties are closely assessed.
If you are deemed as higher risk the underwriters may decline your application, offer you a higher premium or apply exclusions to your cover.
The most common exclusions that can be applied for Offshore Workers are as follows:
Occupational exclusion – meaning you are not covered if a claim relates to your job.
Physical injury exclusion – meaning you are not covered for accident related conditions.
Rotary aviation exclusion – meaning they won’t pay if your claim relates to a helicopter crash.
These exclusions significantly devalue your insurance and should really be avoided wherever possible.
The Special Risks Bureau offer tailored advice to suit your circumstances.
How can I find out more?
A quote can be obtained from the Special Risks Bureau using the box Quote Request Box on this page. Alternatively, The Special Risk Bureau can be contacted using the telephone number on this page, and a more in depth guide can be found on their site: Life Insurance for Offshore Workers. Details of their processes and regulatory status can also be found there.