Death In Service Cover For Construction Employers
Death in service cover provides a lump sum payment to an employee’s nominated beneficiary if the employee dies while still employed. It is a key part of employee welfare in construction, where physical risk is a daily reality.
For employers, this benefit offers reassurance to staff and helps meet contractual obligations under frameworks such as ECIA or TICA. For families, it provides urgent financial support at a difficult time.
Many firms offer this benefit without fully understanding its coverage, how it differs from life insurance, or when it applies. Clear guidance matters. Providing the right cover shows that you take responsibility seriously and value the people who work for you.
How It Differs From Life Insurance
Death in service cover is not the same as personal life insurance. Life insurance is a private policy that individuals purchase to protect their family in the event of their death, regardless of employment status. Death in service, by contrast, only applies while the employee is actively employed.
The key difference lies in how and when the cover applies. Life insurance follows the person. Death in service cover stays with the job. If a worker leaves the company, the cover ends. There are no ongoing premiums or policies to manage. The employer provides the cover as part of the overall benefits package.
This distinction is essential for both employers and employees. It defines who is covered, when the benefit is available and what happens if someone changes jobs.
What Is Typically Covered In Construction
In the construction sector, death in service schemes usually provide a fixed lump sum to the employee’s nominated beneficiary. This amount tends to fall within an agreed industry range. Under ECIA and TICA frameworks, the current benefit is typically between £35,000 and £40,000.
The scheme does not adjust the amount based on the employee’s salary, age or job title. Employers provide a fixed sum to give families immediate financial support if a worker dies while employed on a construction project.
Welplan administers this benefit in line with those expectations. The process is straightforward and handled by a UK-based team with experience supporting contractors and employers across the industry.
Who Qualifies And When
Employees qualify for death in service cover once their employer includes them in the scheme and begins making contributions. The cover applies while the employee remains in active employment. It does not depend on how long they have worked, their seniority or the type of contract they hold.
In most cases, employers activate cover from the employee’s first day of work by including them in the monthly return. They do not need to complete health checks or fill out extra forms to confirm eligibility.
This clarity helps avoid disputes and ensures that every eligible worker receives consistent protection. It also makes it easier for HR and payroll teams to manage the scheme with confidence.
How Welplan Manages Death In Service Benefits For ECIA And TICA Members
Welplan delivers death in service cover as part of the wider benefit schemes for ECIA and TICA member companies. The scheme aligns with the requirements set out in the NAECI agreement and TICA benefit framework, including the fixed lump sum of £35,000 or £40,000, depending on the cause of death.
Employers do not need to administer claims themselves. When a death occurs, they notify Welplan. A dedicated UK-based team then guides the employer through the process, confirms the employee’s eligibility and coordinates the payment to the nominated beneficiary.
This approach ensures a consistent experience for every employer and family. It also reduces pressure on internal teams at a sensitive time and protects firms from compliance risk or claims mismanagement.
Why Employers Need To Be Clear On This Provision
Death in service cover is a sensitive topic, but it carries serious legal and reputational consequences if employers misunderstand or miscommunicate the details.
Construction employers need to understand who qualifies for cover, what benefit applies and how the claims process works. This clarity is crucial on sites where teams change often and decisions need to happen quickly.
Poor communication can lead to confusion during onboarding, false assumptions among employees or difficult conversations with families after a death. It can also leave you exposed if you cannot show that your scheme meets the requirements of ECIA or TICA.
Welplan gives employers the clarity and confidence they need. The team documents the rules clearly, delivers a straightforward scheme and offers direct support from people who understand the construction sector.
Download Our Employer Guide Or Request A Call
If your firm offers death in service benefits under ECIA or TICA, it is crucial to understand precisely what your scheme provides and how it works in practice. Welplan makes that process simple.
You can visit our employer guide to see how the scheme aligns with industry expectations. Or speak to our team for a quick review of your current cover. We will help you stay compliant, prepared and confident in what you offer your workforce.