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Key points
- Small business health insurance describes cover taken out by a company with fewer than 100 employees.
- It gives owners and employees access to private treatment for eligible acute conditions.
- Some insurers accept groups from two members. At Freedom Health Insurance, group schemes start from two employees on Freedom Elite.
- Cost depends on the number of employees, the cover level, any added benefits and the underwriting method.
What is small business health insurance?
Small business health insurance describes cover taken out by a company with fewer than 100 employees. It gives owners and staff access to private healthcare.
There is no single product with this exact name. The term describes health insurance for smaller organisations, and larger companies can often use the same products.
How does small business health insurance work?
Smaller firms take out this cover so employees can get private diagnosis and treatment, with more choice over their care. It covers acute conditions that arise after the policy starts, depending on how the policy is underwritten.
An acute condition is an illness or injury that is likely to respond quickly to treatment. When an employee needs eligible treatment, they make a claim. The insurer pays some or all of the cost, subject to the policy terms and any excess.
Cover usually continues while the person works for the business.
What are the benefits of small business health insurance?
Benefits for employees
- Private treatment without waiting for an NHS referral, subject to the terms of the policy
- Help with the cost of private medical bills
- Choice of hospital, specialist and appointment time, depending on the cover
- Extra health and wellbeing services, depending on the plan
- Feeling supported at work
Benefits for employers
- Less absence, because employees may be treated and recover sooner
- Better staff loyalty, which can lower the cost of replacing people
- Cover that can be tailored to the needs of the business
- A positive company culture and reputation
Freedom Health Insurance group schemes also include Freedom 360, a health and wellbeing toolkit for eligible members.
How many employees do you need to qualify?
Some insurers accept groups from two members. Small business usually means fewer than 100 employees, while larger organisations are covered by corporate health insurance. Requirements vary between insurers.
At Freedom Health Insurance, group schemes start from two employees on Freedom Elite and three on Freedom Worldwide. On Freedom Elite, registered directors and partners count as eligible employees, as well as people employed on a PAYE basis.
If you are the only person in your business, an individual policy may suit you better.
How much does small business health insurance cost?
The cost depends on several factors. These include:
- the number of employees covered
- the level of cover
- any extra health benefits added
- the type of industry
- the underwriting method
Underwriting is how an insurer decides which existing medical conditions are covered. Read our guide to medical underwriting, or read more about what affects the cost of health insurance.
Employer-paid health insurance is usually a taxable benefit in kind, according to HM Revenue and Customs. Speak to your accountant about how it would affect your business.
Looking for small business health insurance?
Group schemes are arranged through an intermediary. Provided they have a Terms of Business Agreement in place with Freedom Health Insurance, they can request a quotation from us on your behalf. You can also contact us, or read more about our group health insurance.
Freedom Health Insurance cannot give advice on which cover is right for your business. For independent advice, and to compare different providers, speak to an intermediary.
Common questions
How many employees do you need for small business health insurance?
It depends on the insurer. Some accept groups from two members. At Freedom Health Insurance, group schemes start from two employees on Freedom Elite and three employees on Freedom Worldwide. Registered directors and partners count as eligible employees on Freedom Elite.
What is the difference between small business and corporate health insurance?
Small business health insurance usually describes cover for companies with fewer than 100 employees. Corporate health insurance is the term often used for larger groups. Both work in a similar way and provide similar benefits to employees and employers.
What affects the cost of small business health insurance?
It depends on several factors. These include the number of employees covered, the level of cover, any extra health benefits added, the type of industry and the underwriting method. An intermediary can compare the options available for your business.
Sources
- Expenses and benefits: medical or dental treatment and insurance. What to report and pay. HM Revenue and Customs.
