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RISING WOMEN EXPERT
ADVICE...
What types of coverage do I need for my
small business?
Small business is now big business. Knowing this, insurance companies in
touch with their customer’s business needs have gone full throttle ahead
with plans to cater to this market, especially when it comes to group
benefits.
More than 70 percent of approximately one million small businesses in the
nation have fewer than five employees - a percentage many insurers choose to
ignore. Ironically, most group benefit insurers target groups of over five
employees or much larger groups. Consequently, small business owners may
think a benefits package is either not available or too expensive, but this
is not always the case anymore.
The small business market is growing so quickly that the insurance industry
has developed a new product to meet this need. The challenge was to deliver
pooled purchasing power at a reduced premium rate, while providing
personalized service and distribution across Canada. The target market is
businesses with a minimum of two employees, including homebased businesses.
Business owners think of group benefits as a human resources tool and are
using them to attract quality employees. According to group benefit experts,
a good plan can enhance the overall caliber of business:
- Benefit plans are structured to provide tax-free benefits to employees.
Health and dental claims payment are received tax-free and reduce personal
expenses.
- Benefit plans don’t compete for quality staff on wages alone. There are
many excellent, qualified people available for hire in the workplace. An
employee benefits package is a proven human resource tool that allows a
company to attract the staff it wants.
- Benefit plans reduce turn-over. Employees will recognize and respect that
the company has made a commitment to invest in their quality of life.
Knowing what type of program is right for them can be difficult for business
owners. Not all plans will fit the needs of their employees or budget. The
bottom line is each program should include financial protection from unseen
expenses resulting from sickness, injury, medical care and death. The
benefit schedules should be fair and equitable, meeting the moral obligation
on your company to protect employees and dependants.
Danielle Miller |
