In this guide, you will learn how private commercial health insurance works, how it differs based on the size of your business, and how to locate the best deals.
What is commercial health insurance?
Private business health insurance is a type of policy that a business can purchase to provide health coverage and benefits to its employees. It can be paid with pre-tax funds through the company's business account. They are used by companies large and small to motivate and care for their employees when they are sick.
How does it work?
Your limited partnership establishes a group health insurance policy that covers your employees when they need treatment.
There is also private insurance for business owners. For example, if you own your own business, you can buy a policy that covers your employees and then a separate, enhanced policy that covers you.
In either case, the company "owns" the policy, not you, and it is considered an "advantage in kind" for tax purposes.
What does it cover?
What your policy covers depends on the level of coverage you buy. Examples of things that are most commonly covered include private hospital stays, diagnostic tests and consultations with specialists, and treatment of short-term acute medical conditions.
Things that are not covered often include long-term chronic conditions (although cancer is a common exception), cosmetic procedures, and pre-existing conditions. It's worth noting that you can often upgrade your policy to cover some or all of these things, and there are also providers who can put together a custom package for your business, based on company specifications.
Make an inquiry and we will introduce you to a mediator who can help you decide what type of health insurance package your company needs and determine the best provider to combine.
How does private health insurance for small businesses work?
It works the same way it does for large operations, but you may need a custom package based on the size of your business and the needs of your employees. There are many private health insurance offers for small business owners, with surprisingly flexible terms and low rates.
If you are interested in getting private small business health insurance, it is worth talking to an experienced broker. They can help you determine exactly what coverage you need and the best deal on that.
The independent consultants we work with have helped organize private health insurance for small businesses across the country.
What are the costs of medical insurance for private companies?
In the UK, the costs of private health insurance for a business depend on several different factors.
These include (but are not limited to):
- The company itself and the level of service it offers: All things being equal, some companies are more expensive.
- How many employees do you want to cover? The more people you want to cover, the higher the total cost.
- The level of coverage you want to have: When it comes to the type of coverage you want, there is a wide variety of private business health insurance in the UK. Most policies have a basic level of coverage that is reasonably broad, although paying more can increase the amount of coverage and additional services available to you.
- If you want additional benefits: Many companies offer additional benefits, such as access to specialists (such as nutritionists and health coaches) or on-site health consultations and workshops.
Tax rules for private company health insurance
There are some tax implications to consider when considering private health insurance for your business. You can read on for an overview of the rules, but note that these only provide a summary; when in doubt, call HMRC or speak to an expert.
Health insurance is a deductible account
As such, the money you spend on your business health insurance can be offset by your taxable earnings.
Health insurance must be declared as a "benefit in kind"
Because it is paid out of your business earnings before taxes and is paid in conjunction with the employee's salary, health insurance must be reported as a "benefit in kind" on your P11D form. Depending on your business structure, this could have tax implications for you and your employees.
Health insurance can pay premium tax (IPT)
Like other types of insurance, commercial health insurance is subject to IPT under the conditions that the government specifies for insurance products. The most recent rates for this tax can be found on the government's website.
Why use a private business health insurance broker?
There are a number of benefits to working with an experienced broker. In no particular order, these include:
They can find you the best offer in the entire market
Even if you try to compare the entire market on your own (which can be time consuming, to say the least), it is unlikely that you will be able to find the best deal for your business.
This is where the independent mediator comes in. An Independent Broker Has Unparalleled Access - From the exclusive broker deals offered by the top insurers on the market to little-known commercial insurers, your broker will scour the market to find the best plan for you.
Simply put, using a broker can save you time, money, and potential disappointment. They will compare the rates of the private health insurance that operate across the market for you.
Experience and years of experience
But it's not just about communication. The broker also has the knowledge to discover market trends and much more. By working with you, they can ensure that you don't overpay for features you will never need, or that you don't put your business at risk due to lack of insurance.
Personalized service and support
A great broker knows that happy customers are repeat customers. As such, they will do their best to build a long-term relationship with you and provide as much assistance and value as possible.
It's a phone call, or they'll walk away together, and they'll be there to provide support throughout the year, and not just when you need to renew your policy.
Help with your claims and procedures
In the future, a good broker can help you when it comes time to file a claim, and having them deal with the insurance company on your behalf can save you a lot of trouble. Mediators can negotiate to remove exceptions from your document or help you when your appeal is denied.
Frequent questions
Here you will find answers to the questions we often hear about private corporate health insurance.
Can I get private health coverage with my commercial insurance?
Yes. Many providers are happy to bundle medical coverage along with standard commercial insurance, and may even offer you a better deal to do so, contact us for more information.
Who Provides Private Health Insurance To Business Owners?
Most of the major UK insurers offer private business health insurance. UK market leaders include Vitality and AXA, but be sure to seek advice before contacting your supplier directly.
If you go directly to one of these companies, you will not be able to access their products unless and may end up losing a better deal elsewhere. Submit an inquiry and we will refer you to a specialized broker who will compare the entire market to find a detailed policy for your business needs.
How do I get the best private health insurance for a small project?
No single company offers the best UK private business health insurance. Instead, the best insurance company for you will depend on your unique circumstances and what exactly you want from the policy.
Can I get private health insurance for a sole proprietorship?
Yes. You can use a comparison site to find the best deals for a business for one person, but you are likely to miss out on some of the best prices, because these sites don't cover the entire market and tend to list the companies they have deals with first.
The best approach is to speak with an experienced independent broker who can do a comparison of the entire market, precisely tailored to your circumstances. This way, you know that you will get the best deal available to you.
Can I buy private health insurance for a family business?
absolutely. It should be no different than obtaining health insurance for any other type of business.
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