Employee Benefits / Business Insurance

Starting a business and then finding and attracting the right staff to grow it are some of the biggest challenges you will face. It makes sense to protect your employees as well as reduce the associated costs to your business should something happen to them and they cannot come to work. Insurance cover for employees is a great tool to protect both your business and your investment in it. At the same time you can boost staff retention by rewarding them with group cover benefits.

What is it? This type of insurance falls into three categories.

  1. Employee Benefits programmes or “Group Schemes” are where an employer takes out insurance to cover their staff (either all of them or selected groups) to reduce the impact of death or illness and accident on the employee’s family, and/or the business. The proceeds of some of the insurances can be paid to either the employee or the business. As little as 5 staff is enough to qualify in most cases.
  2. Key Person Cover is when a business recognises the importance of certain staff to the success of an enterprise and so insures them to offset the financial impact of them being unable to fulfill their role.
  3. Shareholder protection is a tool to protect and facilitate the transfer of ownership of shares in the business, so an effected shareholder and their family / estate can realise the value of their shares in cash, should the shareholder die or suffer a major and traumatic event that stops them participating in the running of the business.

Types of cover and what they do

Employee Health Insurance

Having a Health scheme in place allows staff to access health professionals and treatment faster and bypass the public system, so they can return to work sooner. On average, staff that have a health scheme in place, take 2 less sick days per annum than staff without a health scheme. Because the risk faced by the insurer is reduced by insuring a number of people, they can apply generous discounts and can give concessions covering existing health problems. These discounts and concessions can also be extended to staff’s family members.

Employee Life Insurance

Employees can be insured with the benefit being paid to the employee and /or the business. In the event of an employee dying or being diagnosed with a terminal illness, a benefit is paid that can either be given to the employee and their family or retained by the business to help offset the cost of the loss of the employee.

Employee Trauma/Critical Illness Insurance

This is designed to pay out in the event an employee suffers a major, life changing illness or accident such as a stroke, cancer, or blindness. This is statistically much more likely to happen before the age of 65 than dying. The money can be used to help pay for medical care and recuperation, or to assist in adjusting to a disability, as well as to repay or reduce debt. Where the business is the beneficiary of the policy, the money can be used to pay the staff member’s wages, source a replacement or offset other associated costs.

Total and Permanent Disability Insurance

Total and Permanent Disability pays a lump sum when an employee can no longer able to do job ever again. Examples of claims paid on this type of product include a mechanic who developed arthritis and an office worker who developed motor neuron disease.

Income Replacement insurance

This type of product will pay a percentage of an employee’s salary/wages every month, when they are too sick to work. This means that you can keep paying valued employees while they are off work due to illness until they are able to return to work, rather than having to let them go.