Chances are that if you are a small business owner you have spent a lot of time and effort building your business. That is why it’s so important to protect everything you have achieved. Your insurance needs are very diverse. Not only do you require coverage for your property from loss, there is also the equipment and inventory to consider. One of, if not the, most important assets of your business is your employees. You need to look after their needs as well, with a group health plan.

Heath insurance provided by the government will only cover basic medical needs, especially for individuals between 18 and 64 years of age. For prescription drugs, dental care, and vision care individuals are on their own. If they need additional coverage, they have to pay extra for it through the Alberta government supplementary health coverage (Blue Cross) or private insurance providers.

A group health care insurance is a single policy covering the expenses of several people, instead of a single person. The premiums for this type of insurance policy are based on the group as a whole, taking into account such variables as average age and physical hazards in the workplace. Advantages of this type of coverage are that all members of the group are covered regardless of age or physical condition. The initial costs are lower as it is one policy issued for the entire group rather than a separate policy for each individual. The insurance company will review the claim history on an annual basis and adjust the premium based on usage.

Another key advantage to group plans is that usually they not only cover the individual employees but their families as well. Having your employees participate in a health care plan may also reduce days lost to sickness (both for them and their families) as they won’t be reluctant to utilize a healthcare system that more heavily relies on a pay-as-you-go philosophy.

The disadvantages of a group plan are that you do not get a customized health care policy where you can have provisions included or excluded, nor can choose the deductible amount.

In today’s competitive workplace qualified employees are hard to recruit and retain but having a comprehensive benefit package will make you more attractive than your competitor who doesn’t offer the same benefits.

July 9, 2008