Many small businesses and startups are always looking for ways to keep costs down, especially until they become more resilient as a company. One of the often overlooked expenses is quality employee insurance. While cutting your insurance costs can save you a significant amount of money each year, it can be more costly and risky in the long run.
Does a business need insurance?
Ideally, every business should provide insurance to its employees, and in turn, all employees will have more than adequate high quality coverage for themselves and their families. In fact, many small and start-up companies do not have an insurance budget. In most cases, it’s not that businesses don’t want to provide insurance, they just think they can’t.
Businesses with fewer than 50 employees are not required to offer health care to their employers. While this is good news for startups or small businesses trying to cut down on financial hardship, there are several reasons why companies with fewer than 50 employees may still offer insurance.
- Small Business Healthcare Tax Credit. Coverage companies can qualify for a tax credit equal to 50 percent of premiums.
- Highly qualified and long-term employees: insurance companies are more likely to have skilled employees who will stay with the company for a long time.
- A happier, more productive workplace: Research shows that employees who feel cared for and valued in the workplace are more likely to be loyal employees. Insurance workers are also happier and more productive at work.
- Insurance can help you cut other costs: Some employees prefer insurance coverage over a higher salary. Depending on your business and your budget, it may be more profitable to offer insurance than to offer higher wages.
Protecting Workers with Worker Comp Insurance
While small businesses are able to provide health insurance to their workers, workers’ compensation insurance is not an option. Employee Compost Insurance is designed to protect employees in the event of injury in the workplace.
If an employee is injured at work, the injury or illness may qualify for benefits that cover the cost of medical care. and missed work days. Whether you work for two employees or for 20, it is important that employees work with them.
While many business owners assume that insurance is for injured workers only, it can also protect you as a small business owner. Even though handling employee claims can be time-consuming and stressful, insurance can prevent an employee from being sued by an injury at work. Compost insurance for workers is more cost effective than legal costs in a lawsuit against you from an employee.
Choosing insurance for your business
Choosing insurance for your employees can be a little intimidating. Working with an insurance broker can be rewarding, but be sure to work with someone who specializes in small business plans. Working with an employee lawyer can also help you understand the benefits and everything you need to know to protect your business and your employees.
Never choose a “just to get it done” insurance plan. Taking the time to research and choose a plan that benefits you and your employees will cost you work and time in the long run. Here are a few things to consider when looking for insurance:
- What is insurance?
- What is a health care provider network?
- What are premiums, deductibles, and copays?
- Do your employees have a choice?
- What benefits are needed?
If in doubt, ask a friend. Startup business owners see what kind of insurance they provide to their employees. You can also take the time to talk to your employees about what type of insurance they want and how much they are willing to pay on their own.