Small Business Health Insurance: Big Benefits for Small Companies

Canadians are generally covered for a significant portion of their health-care expenses by their provincial insurance plans. However, some areas of care may not be covered or provide limited coverage. A common way to fill these gaps is to purchase group insurance through your employer. The small business insurance policy is intended to offer group coverage to small businesses, with the same employee benefits that are offered to large companies.

Who qualifies for the Small Business Group Policy?

Small business insurance plans are usually available to companies with at least two employees. Every insurance company is different. Some may require that there be five or more employees in order to be eligible for group coverage, while others will offer options for only two.

For companies consisting only of the business owner, policies are also available. These plans are designed to allow people just starting out to own a business to get coverage for themselves and their dependents, until they need to hire staff. Then they can apply to a small-business health insurance policy.

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It doesn’t matter how long you’ve been in business, or what type of company you own; these factors don’t have an impact on your ability to qualify. However, they can have an effect on the rates. Because of the higher risks, rates might be higher for companies that are involved in dangerous work.

Are Full-Time or Part-Time employees eligible for benefits?

The business owner can decide who is eligible for the benefits of the group plan. The employer can provide benefits to only full-time employees or it can include part-time workers and contractors.

Part-time employees may be offered certain benefits while full-time employees can enjoy a wider range of benefits. Other employers adjust benefits based upon an employee’s level of seniority within the company. The employer can change its group insurance policies at any time. This allows the company to grow and adjust. Many companies change their group insurance policy to cover part-time employees. Or, they may add additional coverage options to suit individual needs.

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Companies allow employees to choose which type of coverage they wish to have, since health needs can vary between individuals. Vision care might be an option for someone who wears glasses, but dental care coverage might be a necessity for someone whose child will require braces.

What are the benefits of small business health insurance?

The benefits of a small business insurance policy that provides supplemental health coverage are not only for employees but also for the business owner. You can get coverage for out-of-pocket costs in areas such as prescription coverage, vision care, dental care and disability insurance.

Employees will be more likely to stay with the company if they have access to a benefits package. This can help lower turnover and reduce the time and cost of hiring. Potential applicants will also be attracted by it, as the company values its employees and rewards them accordingly.

For premiums paid towards a group insurance plan, small business owners can get a tax deduction. That aspect is attractive from an employer’s perspective.

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What types of insurance companies offer small-business health coverage?

Many insurance companies offer small-business health policies for Canadian businesses. A group plan can be purchased from the same large-name insurers that offer benefits for large companies. This allows you to take advantage the many resources and low prices. It is easy to compare rates and coverage and request quotes before you choose the company that suits your needs. It is not necessary to accept less than the best coverage and the most affordable price for your business.

A small business insurance policy for your company is a great way to make adjustments as your company grows. There are many options for adding new employees or changing the coverage. Your insurance provider will work with you to adjust and modify your policy to meet new requirements.