Insurance for a Small Business

Five Reasons Small Businesses Need Health Insurance

It’s a dream coming true...a business of your own. You’ve done your homework, spending countless hours on research. You’ve ferreted out your demographic. You know your market. Your products and services are coalescing...but have you thought about health insurance?

These days, with health insurance at the top of the controversial heap, how does a new business wade through the issues of government mandates, and the rising demands to provide health insurance for employees? Here are five reasons to consider health insurance for small business.

1. The government requires my business to provide Workman’s Compensation Coverage for my employees in case they are injured on the job. Why do I need to pay money out of my profits to insure them and their families, too? Workman’s Compensation provides the means to care for an injured employee, and lessens the opportunity for legal backlash. Providing health insurance for the employee not only establishes a deeper commitment by the employee to protect your interests as an employer, health insurance for small business
also provides coverage for associated medical issues that may arise that aren’t covered under Workman’s Comp. A lawsuit against your company to pay additional medical expenses is not exactly what you want your profits to be funneled into, either.





2. I have my own health insurance. Why should I stick my neck out and provide health insurance for my workers? You understand your own needs for insurance, because health issues could take you out of the workplace and threaten your business. In the beginning phases of your venture, when a few employees do the majority of the work, even the loss of one key employee to injury or illness could jeopardize everything.

3. The costs of health insurance for small business are high. How can I build my business when I have to spend money on something that offers no return? Just as you have to budget for wages and Workman‘s Comp, the benefits you offer your employees also reflects your investment in hiring them. Popular approaches to providing health insurance for small business is to offer a group plan which allows the employee to pay for their own coverage, incentives where the employer contributes a portion to the employee-paid health insurance, or fully-paid health insurance coverage provided by the employer.





4. I’ll need every available penny to get my business up and running. How can I afford to get health insurance for small business, too? Work it into your start-up business plan. It’s easier to budget for insurance at the outset, than trying to come up with the money later out of operating expenses or profits.

5. If I provide Health insurance, I may not have the funds to add more employees when the time comes. I’d rather hire employees than pay Health insurance. If the unforeseen happens, as it always does, and you aren’t financially prepared for it, you may not have a business to worry about staffing.