As a business owner, you may have wondered about the importance of providing health insurance for your employees. While it may seem like an additional expense, the benefits of having a health insurance policy in place for your team cannot be overstated. Not only can it improve the overall wellbeing of your employees, but it can also contribute to the success of your business in the long run.
On the other hand, the risks of not having this type of coverage in place can be significant, including reduced productivity and staff retention. This blog post will explore why business owners should consider implementing employee health insurance for their workforce, outlining the benefits of this type of coverage for your business and employees and discussing the potential risks of not doing so.
So, you have heard of employee health insurance, perhaps you know another business owner who has this in place for their company, and you are considering taking out this type of insurance policy for your team too.
What are the benefits of employee health insurance?
Offering health insurance to employees can provide several benefits for both your team and, notably, for your business, including:
- Faster access to treatment: Private health insurance can provide more immediate access to treatment and specialists, reducing waiting times and allowing employees to return to work sooner following an illness.
- Improved employee health and wellbeing: Because health insurance can give employees faster access to medical care when needed, this can help lead to improved health and wellbeing in your team.
- Improved job satisfaction: Offering health insurance can help employees feel valued and cared for by their employer, leading to increased job satisfaction and engagement.
- Increased productivity: When employees have access to medical care when needed, they are less likely to take time off work due to illness, leading to increased productivity.
- Increased employee retention: Providing health insurance can make your company more attractive to current and potential employees, leading to increased retention and reduced recruitment costs.
- Competitive advantage: Providing health insurance can help your company stand out from other employers and attract top new talent.
- Tax benefits: In the UK, health insurance premiums are usually tax-deductible for employers, providing a cost-effective way to offer employee benefits.
Overall, offering health insurance to your staff can help to improve employee health and wellbeing, increase retention and productivity, and make your company more competitive in the job market. With these benefits in mind, it is essential to note that not having employee health insurance in place creates risks for your staff and your business.
What are the risks of not having health insurance for my employees?
In the UK, employers are not required to provide health insurance to their employees as healthcare is provided by the National Health Service (NHS). However, there are still risks associated for your business associated with not having health insurance for your employees, including:
- Reduced employee retention: Employees may be more likely to leave your company if they do not have access to health insurance, especially if they have health issues that require regular medical attention.
- Poor recruitment: If your company does not offer health insurance as a staff benefit, you may be at a competitive disadvantage when recruiting and retaining top talent, with job seekers preferring to work for a company offering health insurance. This is particularly important in today’s competitive job market.
- Decreased productivity: If employees cannot access medical care when needed, they may be less productive at work because they are undergoing an illness or other health issues.
- Increased absenteeism: Employees may miss work more frequently if they cannot access medical care for themselves or their families, leaving your business with high absence levels.
- Increased employee stress: If employees are worried about their health or ability to access medical care, they may experience increased stress.
Overall, business owners in the UK do not legally have to provide health insurance policies for their workforce, however offering it to your employees can help to improve their health and wellbeing, increase employee retention and productivity, and make your company more competitive in the job market and help to reduce the impact of sickness on your business productivity.
What are the different types of health insurance that I can take out for my employees?
There are several different types of health insurance plans that you can offer to your staff. Some of the most common types of health insurance plans include:
Private medical insurance (PMI): This is the most common type of insurance that covers the costs of private medical treatment, such as consultations, tests, and hospitalisation. PMI can also cover the costs of outpatient treatment and therapies, such as physiotherapy and counselling.
Critical illness insurance: This type of insurance pays out a lump sum if an employee is diagnosed with a critical illness, such as cancer, heart attack, or stroke.
Income protection insurance: This type of insurance pays out a percentage of an employee’s salary if they cannot work due to an illness or injury.
It is important to note that different insurance providers offer different types of coverage and service levels, so it’s essential to research and compare other options to find the best fit for your company and your employees.
As a business owner, I’m too busy to research and organise health insurance policies for my team. What is the best way for me to put this cover in place?
You may want to consult a specialist health insurance broker or consultant to help you navigate the process and find the right insurance coverage for your staff. A broker can provide expert advice on the types of insurance available, help you compare policies, and negotiate the best rates on your behalf. Here are some of the benefits of using an insurance broker:
Get expert advice: Insurance brokers have extensive knowledge of the insurance market and can help you navigate the complexities of different policies and providers.
Save yourself time and money: Brokers can help you save time by handling the paperwork and administrative tasks involved in setting up insurance for your employees. Importantly, brokers can negotiate lower rates with insurance providers, helping you save money on your insurance premiums.
Get the right solution with ongoing support: Brokers can help you find the right insurance policy that meets the specific needs of your business and employees, providing ongoing support to help you manage your insurance policy, including renewals and claims.
By working with a reputable broker, you can ensure that you get the best value and the right insurance coverage for your employees.
At Anderson Health, we are employee health insurance advisers, not salespeople. We offer a personal service that gives clear and concise advice to business owners using our in-depth knowledge of the health insurance market we have built up with our 35 years as health insurance brokers.
Anderson Health are independent Private Medical Insurance advisors based in the city of London with customers both in the UK and throughout the rest of the world.
Anderson Health. Independent. Impartial. Insurance Advisors.