They are able to cover it but bear in mind this type of insurance is usually bought in units, and they do talk to one another. You will only be entitled to the equivalent rate to your take home after the deferment period. Ie. you can't claim sickness and get paid more than what you would usually. It applies to PA/Personal Accident cover too. There's a long explanation and more technical side to this, but I don't have the energy. Although, if you wanted more information, let me know and I'll get round to it! It basically boils down to that though :)