Actively At Work

What Does Actively At Work Mean?

The term “actively at work” refers to an employee being present and performing their job duties, as opposed to being on vacation or away from work for any other reason.

In the context of insurance, many plans only begin coverage when an employee is actively at work. As a result, employees who are not actively at work must wait until they return to start receiving insurance benefits. Actively-at-work clauses appear most often in disability insurance policies, since insurers want to confirm the employee is healthy enough to work before any benefits become available.

Insuranceopedia Explains Actively At Work

Insurance companies require employees to be actively at work before their coverage begins in order to protect against potential exploitation.

For example, if an employee planned a three-month vacation and timed their insurance application to coincide with the start of the vacation, they could potentially take advantage of lower group insurance rates. However, with an actively-at-work clause, the employee would need to continue paying for their insurance at the individual rate while away. They would only qualify for the discounted group insurance coverage once they return to work. Group rates on employer-sponsored plans, including life insurance and workers compensation, are typically lower than what someone would pay buying coverage on their own, which is part of why insurers add this clause.