Unfortunately, employees get sick and experience injuries from time to time. For employers, it’s an inevitable part of running a business. But if staff illness and injury are not handled correctly, they can be very costly.
On average, health-related absenteeism and presenteeism cause employers to lose 35.6 working days annually per employee. This absence equates to a staggering £61 billion in lost productivity every year.
This is why employers must be as proactive as possible when it comes to minimising the impact of sickness absence, and one of the best ways to do this is by offering company health insurance.
What is company health insurance?
Company health insurance, also known as business medical insurance or group private medical insurance, is insurance that protects the health of the directors and employees of a business. It allows staff to take advantage of private medical care for acute conditions, which can lead to a faster recovery and a quicker return to work.
Company health insurance typically covers inpatient, day patient and outpatient treatment costs in full, as well as hospital accommodation and nursing fees.
A lot of business medical insurance policies also cover outpatient specialist consultations and diagnostic tests, such as scans, x-rays and blood tests, as well as clinical and complementary therapies, like physiotherapy.
What’s ultimately included will all depend on the premium a business pays and the T’s and C’s outlined in the policy.
Benefits for both employers and employees
As well as allowing fast access to private medical care, company health insurance also affords employees flexibility by enabling them to have convenient appointments at a hospital of their choice. This not only provides the individual with more choice, but also means they typically need less time off work for appointments. Plus, employees can sometimes benefit from therapies and treatments that are not available on the NHS.
Company health insurance is also conducive to a more contented workforce as it’s a benefit that many employees really want. In fact, in a recent study by Drewberry, private medical insurance was second to only flexible hours in the list of benefits most sought by staff.
For employers, business medical insurance boosts their benefits offering, which in turn helps them attract and retain the best talent.
Furthermore, by providing private medical insurance, businesses benefit from reduced and better managed sickness absence, which means employees stand a greater chance of returning to work quickly following an illness or an injury.
Finally, private medical insurance often costs less when it is purchased as part of a group scheme as opposed to being bought by an individual. Therefore, the perceived value of the benefit among employees is often higher than the actual cost to employers.
How much does company health insurance cost?
Obviously, the cost of company health insurance depends on a number of factors and varies from business to business. The age of employees, number of employees, business location, business sector, cover level and underwriting style will all have an impact on the price a company pays for health insurance.
However, as we mentioned, securing health insurance for an employee is often cheaper than if the individual did it themselves. Moreover, total annual premiums are usually less than the total cost of sickness absence annually. So while company health insurance won’t prevent your employees from falling sick or sustaining injuries, it will make sure they get the proper care they need and return to work quicker, saving businesses money in the long run.
Here at Premier Choice, we are dedicated to helping businesses like yours find the right insurance for their needs. We do not offer off-the-peg solutions and instead take time finding out more about your business and its employees.
I joined Premier Choice Group as a Healthcare & Protection Consultant in 2017, where I now look after the needs of over 200 clients nationwide. Prior to joining the Premier Choice Group, I worked for a large Private Healthcare Insurer, VitalityHealth, and managed SME and Individual clients across the country.