Accidents at work, workers falling sick, and deaths at work; these are all the things that may harm your business, so the need for insurance is there. Insuring your employees is simply a must for any business; if you have employees insured you are more likely to get high quality workers, not to mention that with the right type of insurance you are covered for any type of liability, such as work accidents and even lawsuits from your workers. Insurance for employees can be acquired individually or you can purchase a group policy, which is more common. The most common types of employees insurance are:

  • Health insurance
  • Life and disability insurance
  • Worker’s compensation insurance

There are other types like critical illness insurance, private medical insurance and even income protection, but those types of insurance are mostly used under volunteer package policy.

To successfully insure your business and your employees you first need to analyze the needs and aspects of your business, you need to consider the biggest risks that your business and your employees are facing. Based on that analysis you can easily see what type of insurance you need to purchase. One thing to remember is that insurance for your business is a good investment, not having insurance means that your business can suffer due to an accident or you might get sued, insurance will make sure that your business is minimally disrupted.

Employee insurance types

The basic type of insurance for your employees is life insurance. Life insurance will pay the beneficiary of the policy a lump sum in the amount of a year’s salary, up to four times that amount.

In addition to life insurance you can get critical illness coverage, you can take this type of insurance individually or together with life insurance. This type of coverage insures your employees that are diagnosed with a critical illness.

Another coverage that is usually purchased in the same package is private medical coverage; it is used to pay the expenses of a private treatment for serious illness. This type of insurance is very convenient for business as it allows the ill person to be treated immediately or at his own choosing, which will minimally disrupt your business.

The last type of insurance that usually goes in the same group is income protection or permanent health coverage. It is used to pay the insured person that is unable to work due to injury or illness, thus preventing the loss of income.

There are other types of insurance you can take, depending on your business. If you rely on a person too much for your business you may take out the key person coverage policy. It is a very useful policy that allows you to insure an important employee; if that employee dies or suffers a critical illness the company will pay you the amount estimated that your business will lose in such a situation.

There is one insurance type that is always recommended to any business and that is worker’s compensation coverage. What is so beneficial about this type of insurance? Two things, first, this type of insurance provides the medical treatment to the injured party, second, the employee gave up the rights to file a lawsuit against his employer. So you will provide the medical treatment for your workers and you can’t get sued for negligence.

Of course two of the most common types of insurance that almost always go with health insurance are dental and vision coverage. Dental coverage can be acquired in a group package in addition to a full health insurance, which also goes for vision coverage.

Many of the insurance companies will offer you a voluntary type of policy. Voluntary policy is an option given to your employees to take out addition insurance that may be deducted from their paycheck. Most of the companies offer dental plan, life insurance, vision, disability and critical illness coverage in voluntary insurance packages.

The need to insure your employees

As mentioned above you gain more than you lose when you insure your employees. The right insurance coverage will insure that you are covered for any possible event from employee injury at the workplace to illness situation and possible death situations. That goes hand in hand with pleasing your employees; a satisfied employee is a productive employee. Not only will you have your production boosted but you will always be seen in positive light and that is beneficial for you when hiring, by providing good insurance for your employees you gain willing workers. Another benefit for you as the business owner is that some of the insurance claims can be tax deductible. Most of the times dental and health insurance are tax deductible, so you can at the same time make your workplace a safe environment, make your employees feel safe and willing to work and you can also maximize your tax deduction.