Everything You Need to Know About Personal Accident and Sickness Insurance

Around 1 in 3 Australians will experience a disability or injury that stops them from working at some point in their lives. For couriers and delivery drivers, who spend long hours on the road and rely on their physical ability to do their jobs, the risk is even greater.

Without the right insurance coverage, many workers end up relying on savings, borrowing money, or struggling to pay bills—making financial stability difficult during recovery.

With so many Australians at risk of being sidelined by injury or illness, having Personal Accident and Sickness Insurance is key to keeping your finances secure if the unexpected happens.

So, what exactly is Personal Accident and Sickness Insurance, and why is it so important for couriers? In this guide, we’ll walk you through everything you need to know—from what it covers and why it matters to how it can support you financially during challenging times.

What is Personal Accident and Sickness Insurance?

Personal Accident and Sickness Insurance is designed to protect your income if an injury or illness prevents you from working. Whether you’re sidelined for a few weeks or facing a long recovery, this coverage ensures that you don’t have to rely solely on savings or take on debt just to make ends meet.

It provides a portion of your lost earnings, helping you stay on top of essential expenses like rent, mortgage payments, bills, groceries, and other daily necessities while you recover. Instead of worrying about how to pay for your next meal or keep up with household expenses, you can focus on healing and getting back to work.

This coverage is especially valuable for those who don’t have access to sick leave or workers’ compensation, such as couriers, small business owners, freelancers, and gig workers.

Why does it matter?

Life is unpredictable, and a sudden accident or illness can disrupt your ability to earn an income. Without a backup plan, even a short time off work can put serious strain on your finances, making it difficult to cover everyday expenses and maintain your lifestyle.

Who should consider Personal Accident and Sickness Insurance?

Regardless of your profession, if you rely on your ability to work for income, Personal Accident and Sickness Insurance helps protect your financial stability when you need it most.
However, here are some job types it’s particularly important for:

1. Couriers and delivery drivers

Couriers face unique risks every day—whether it’s traffic accidents, heavy lifting injuries, or even repetitive strain from handling parcels. A single incident could put you out of work for weeks, making it hard to cover day-to-day expenses.

Without a financial backup plan, many couriers end up dipping into savings, borrowing money, or struggling to pay essential bills. Personal Accident and Sickness Insurance gives you peace of mind by ensuring you still receive an income while you recover, allowing you to focus on getting better without financial stress.

2. Small business owners

Small business owners have the added pressure of not only managing their personal finances, but also keeping their business afloat. If a business owner falls ill or gets injured, their income may come to a halt, while the business still has ongoing expenses that need to be covered.
This is where Personal Accident and Sickness Insurance becomes essential. It can help replace part of the income that’s lost while they recover, easing the financial burden.

For more details about business insurance, head over to our blog.

3. Contractors and freelancers

For contractors and freelancers, their income is often directly tied to the amount of work they can perform. If they’re unable to fulfil contracts or meet deadlines because of health issues, their earnings can take a serious hit.

Personal Accident and Sickness Insurance acts as a safeguard in this situation, helping them manage essential costs while they recover. Instead of scrambling to find alternative income or dipping into savings, they can focus on getting back to full health without the added pressure of lost earnings.

4. Individuals without adequate sick leave

Not everyone has the luxury of a generous sick leave policy. Some workers may have limited paid sick leave—or none at all. For someone working in retail or hospitality with a minimum sick leave allowance, a few days off due to illness can mean unpaid time away, affecting their ability to pay for day-to-day expenses.

Personal Accident and Sickness Insurance can bridge that gap, offering financial protection during those times when sick leave benefits fall short, helping individuals maintain financial stability.

What does Personal Accident and Sickness Insurance cover?

Not all policies provide the same level of coverage, so it’s important to understand what your plan includes. Here are some common features you can find in Personal Accident and Sickness Insurance:

1. Income replacement

While an injury or illness may stop you from earning, unfortunately your financial responsibilities don’t take a break. Personal Accident and Sickness Insurance can provide financial support by covering a portion of your income to help you manage essential costs like rent or mortgage payments. This ensures that you don’t fall behind on your financial obligations while you focus on getting better and recovering from your illness or injury.

2. Medical expenses

Recovering from an accident or illness often comes with unexpected medical costs. Many policies can help cover doctor’s consultations, hospital stays, surgeries, diagnostic tests, and prescribed medications, reducing the financial burden of treatment. Some plans may also extend coverage to specialist consultations, physiotherapy, and ambulance costs, ensuring you receive the medical care you need without added stress.

3. Rehabilitation costs

Long-term injuries or illnesses may require ongoing therapy and rehabilitation before you can return to work. Personal Accident and Sickness Insurance can assist with expenses related to physiotherapy, occupational therapy, chiropractic care, and other recovery treatments. These services help you regain mobility, rebuild strength, and recover faster so you can get back to earning an income.

4. Additional expenses

Beyond medical and rehabilitation costs, some policies also cover other unexpected expenses related to your injury or illness. This may include home care services, mobility aids (such as crutches or wheelchairs), and even modifications to your home or vehicle if your condition requires them. In some cases, coverage may also extend to transportation costs for medical appointments or temporary assistance for business owners to keep operations running while they recover.

Understanding the key factors that affect your insurance coverage

When choosing a personal accident and sickness insurance policy, it’s important to understand the key features that determine how and when you’ll receive financial support. Here’s a breakdown of the main benefits and how they affect your coverage:

Benefit Period

The Benefit Period refers to how long you can receive financial support if you’re unable to work because of illness or injury. This period varies depending on the policy, so it’s a good idea to choose one that aligns with your personal needs.

For example, some policies may offer a 6-month benefit period, while others might provide coverage for up to 5 years—or even until retirement age. A shorter benefit period might work well for someone with a solid emergency savings fund or other income sources.

On the other hand, a longer benefit period provides more peace of mind for those in high-risk jobs, who may need more time to recover from injuries. By selecting a benefit period that suits your personal risk level, you can ensure that you’re adequately protected for as long as you need it.

Waiting period

The Waiting Period is the time that must pass after an injury or illness occurs before you can begin receiving benefits. The waiting period can vary, but usually ranges from 14 to 90 days, or sometimes longer in specific policies.

When deciding on a policy, a shorter waiting period (like 14 days) can benefit you by providing quicker access to funds, which offers great assistance if you don’t have financial relief. The downside, however, is that you may have to pay higher premiums for that quick access to funds.

In contrast, if you have a solid emergency fund or other financial resources to cover the initial recovery period, you might choose a longer waiting period, like 30 or 60 days, to lower your premiums. It’s all about weighing your financial situation to pick the best option for you.

Coverage amount

The Coverage Amount is the portion of your income, based on what you were earning before you got sick or injured, that the insurance policy will pay you. Typically, this is between 50% and 75% of your income, although some policies offer more flexibility.

For instance, if you earn $4,000 per month, and the policy offers 60% coverage, you’ll receive $2,400 per month in benefits while you’re recovering. The higher the percentage, the more your policy will pay out, but this typically results in higher premiums.

It’s key to pick a coverage amount that fits your financial needs. If you’ve got a mortgage, rent or other big expenses, you might want to go for a higher percentage. But if you have a good emergency fund or other sources of income, a lower percentage could help you save on premiums.

Exclusions and limitations: What’s not covered

When considering personal accident and sickness insurance, it’s just as important to understand what isn’t covered as it is to know what is. Policies come with various exclusions and limitations that can affect the level of protection you receive. Let’s take a closer look at some common exclusions and what they mean for you:

1. Pre-existing injuries

A lot of insurance policies won’t cover pre-existing conditions—meaning injuries or illnesses you had before getting the policy. For instance, if you’ve had back pain or knee surgery in the past, those conditions might not be covered if they come up again while you’re insured.

It’s really important to check the fine print when applying for coverage. Some policies may offer limited coverage for pre-existing conditions after a waiting period, but many don’t cover them at all. If you have health issues that could affect your coverage, it might be worth looking for insurers who offer options that work around those conditions.

2. High-risk activities

Some activities are considered too risky for most insurance policies to cover, and they’re usually excluded from your benefits. For example, activities like hiking in remote areas, playing contact sports, or even motorcycling can come with their own set of risks, so injuries from these activities might not be included in your coverage.

3. Substance abuse

Another common exclusion is related to substance abuse, which usually means injuries or illnesses caused by alcohol or drug misuse. This can apply whether you’re at work or not.
For example, if you were to get into an accident while drunk or develop an illness from alcohol or drug use, the costs for treatment or recovery would likely be excluded from coverage. This exclusion is there because substance abuse is often seen as a lifestyle choice, not an accident or illness.

4. Age limits

Lastly, age restrictions can also impact coverage, especially for older individuals. As you get older, some policies might offer less coverage or even become unavailable once you hit a certain age—usually around 65 or 70.
For example, if you’re 68 and looking to apply for coverage, you might find that some policies won’t cover you at all, or they might offer a lower payout or shorter coverage period. Younger people generally have more options with better pricing, while older applicants might face more limitations.
It’s a good idea to check the age limits on any policy you’re considering, especially if you’re over 60, to make sure you’re getting the best protection available.

Get expert help to secure your financial future

As you’ve seen, there’s a lot to think about when choosing Personal Accident and Sickness Insurance. The right policy gives you peace of mind, knowing your finances are protected if life takes an unexpected turn.

But how do you know if you’ve chosen the best policy for your needs? That’s where GSK Insurance Brokers comes in. With over 40 years of experience, we specialise in tailored policies designed for couriers, gig workers, and self-employed professionals.

Our expert team makes it easy to find the right protection with flexible options and trusted advice you can count on. Get in touch with us today for a free quote and start safeguarding your financial well-being with the right coverage.