Monday, October 7, 2013

The Benefits of Group Insurance for Your Small Business

Small businesses need every advantage they can get to find and retain the talent that will take them from being considered "small" to being industry leaders. One important advantage every small business should employ is a group insurance policy.

When you have group insurance, you become instantly more attractive to potential candidates. Sure, you could offer your employees the option of individual insurance policies, but employees reap more benefits when a group policy is in play. Your employees are not the only beneficiaries when you switch to group insurance, though; you and your company will also reap the rewards.

Benefits to the Employee

Most employees and job candidates prefer group insurance to individual insurance policies. Individual policies are expensive, even if your company is paying for them, and employees would rather have the security offered by a group plan instead. Group insurance is notably cheaper for the benefits it offers, making it more beneficial to the employees.

Employees with pre-existing conditions especially prefer group insurance because there is always the possibility of being ineligible for an individual policy, even if the employer has offered this coverage as a part of their salary negotiations. As an employee, you will never be rejected due to your health, no matter what your pre-existing conditions are. This can be especially beneficial for employees who have chronic conditions like diabetes or depression.

Benefits to the Employer

Group insurance also has a number of benefits for you and your business. Your company will be more appealing to current and potential talent because you offer them the healthcare they need. The uncertainty of the current market makes it difficult to lure talented employees to your side because they are often concerned that small businesses will not be around when the economy finally rebounds. Having group health insurance is a sign to both current and prospective employees that you are a healthy company that is offering benefits during a period when many companies are not.

Group insurance also helps to keep employees happy. Knowing that they and their families are covered by the group policy if they want to be is a great benefit to employee morale. When employees and their families are being cared for, they are less likely to seek employment elsewhere, meaning your employee retention will be higher than it would otherwise.

If you've only been offering individual insurance or no insurance to your employees, you should really consider the benefits that group insurance offers your growing business. Talk to an insurance broker to learn more about the plans that are available in your area, and what the expenses are for those plans. Ask about the minimum number of individuals necessary for the plan if your business is just starting out. An insurance broker will work with you to find the best plan for your employees at the best possible price for your company.

No comments:

Post a Comment