Most insurance plans cover standard risks employers need to cover, such as illness or injury. However, certain industries or specific business have requirements that exceed a basic plan. They need special risk coverage.
There are several reasons that special risk insurance would be necessary. An employee who normally does not travel, for example, may need extra coverage if he needs to take a business trip. On the other hand, special risk coverage could concern a specific employee that requires very specific coverage. For example, a star athlete could have his right arm specifically insured or a surgeon may have her hands under a special policy.
Special risk may also come into effect if an employee is in an unusual circumstance, like if a reporter is sent to cover a conflict abroad. It is necessary to give both the employer and the employee the benefit of added coverage for extraordinary circumstances.