Managing a small business with limited resources is a challenge that every small business owner faces. In such situations, utilising and taking of these limited resources becomes crucial and for them, their best resource is their employees. By ensuring employee safety and wellness, small businesses can not only scale their existing operations but also attract top talent. That is why having employee health insurance becomes a necessity for every small business.
However, a question that small businesses often face while buying an employee health policy is which one is best for their employees and organisation. To answer that, there are some tips for selecting employee health insurance that every employer can use.
Why Do Small Businesses Need Group Health Insurance?
- Protects Business Finances: Having employee health insurance helps small businesses protect their finances in the event of an employee emergency, as the policy covers all related expenses.
- Protect Employee Health: With employee health insurance, employees can stay financially secure during any medical emergency.
- Attracts New Talent: Small businesses need new talent to scale up their operations, and providing health insurance attracts top talent to them.
- Affordable: Buying a group health insurance plan for a number of employees is more affordable than individual health insurance, as the coverage risk is distributed among all the employees. Moreover, insurers often provide a discount to organisations with no claim history.
7 Tips to Choose Group Health Insurance for Small Businesses
Know Your Legal Obligations
Before employers select an employee health insurance plan for their small business, they must understand their legal obligations and requirements regarding it. These requirements can vary depending on their state, type of business, and number of employees. Thus, businesses must be aware of their local insurance regulations, minimum coverage requirements, documentation, and compliance updates.
Understand Employee Requirements
Another key consideration for small businesses when purchasing group health insurance is understanding their employees’ needs and preferences. Employers must consider the average age of their employees, health conditions, and coverage for their family into consideration before buying any policy.
The best way to understand employee requirements is to collect their data and preferences and use them to inform decisions about insurance.
Calculate Cost to Organisation
Providing employee health insurance is a significant financial commitment for small businesses; therefore, it should be done after careful calculations. Before purchasing any small business insurance, make sure to keep a few things in mind. It includes the employer’s contribution towards the premium, potential annual price increase, administrative expenses and tax benefits and implications.
Provides Appropriate Coverage
Employee health insurance should provide adequate coverage that can support employees’ financial needs in medical emergencies. Moreover, employers must choose the sum insured wisely; most employee health insurance plans have a sum insured of around ₹3 to ₹4 lakh. However, the company has a larger budget, and the sum insured of ₹5 lakh can also be chosen.
Choose the Right Insurer
Choosing the right insurer is the best tip for small businesses looking for employee health insurance. A good health insurance company offers plans as per the organisation’s need and budget, has an easy claim procedure and provides assistance at every step during an emergency. TATA AIG is one such insurer that provides diverse small business insurance plans to cater to the needs of organisations and keep businesses and employees financially secure.
Check for Special Coverages
With changing times, healthcare requirements are also evolving; therefore, it is always wise to choose employee health insurance that provides coverage for emergencies as well as special circumstances. For example, after the COVID-19 pandemic, most group health insurance providers added COVID-19 coverage to their plans to adjust to the new world created by the pandemic. Therefore, small businesses must ensure that the insurer they choose offers flexibility to provide coverage in the event of unforeseen circumstances and emergencies.
Compare Multiple Plans
Before finalising any one plan, small business owners must ensure that they compare multiple plans. They can go online to the websites of different insurers, check their plan benefits, get a quote for their premiums, and look at customer reviews. Once they have compared the plans, please choose the one that best matches their organisation and employees’ requirements.
Summing Up
Keeping small businesses afloat and profitable can only happen with the support and dedication of those few employees who associate themselves with a budding business. Therefore, small businesses need to offer their employees financial protection through employee health insurance.
Now, with useful tips such as understanding laws and employee needs, comparing employee plans, and choosing the right insurer, organisations can make informed decisions. Which ultimately helps them buy the best policy for their organisation.
