It’s not easy to run a business, and it’s costly, too. Apart from the salaries, employers have other operating expenses to deal with, including rent, utilities, office supplies, software licences, and service fees.
Business insurance can be a significant operating expense. Typically, it includes property, liability and business income insurance. It also covers employee insurance, usually health insurance.
Why does a business owner like you need to provide employee insurance?
1. Attract and Retain Talent
Employee insurance is a typical employee benefit, and it can help you fill open positions faster and reduce employee turnover.
Apart from compensation, employee benefits are a key factor employees consider when appraising job opportunities. The better your benefits, the likelier top talent will apply for a job at your company.
Employee benefits also positively influence employee retention (i.e., your employees’ decision to stay). A high retention rate means employees tend to stay for a long time. Employee retention is important because the longer an employee stays at your company, the more value you can get out of the time, money and effort you’ve spent recruiting, onboarding and training them.
2. Boost Employee Productivity
If your employees have health insurance, they’re more likely to seek medical attention when they feel ill since they won’t have to pay out-of-pocket (or not as much out-of-pocket) for the consultation. Additionally, employees with health and wellness benefits can be more intentional about maintaining their health.
Employees with access to medical care can get treated for medical conditions before their situation worsens or before they suffer from debilitating complications. Additionally, employees encouraged to maintain a healthier lifestyle tend to get sick less often.
Since health insurance can mitigate the risk of devastating and unexpected medical expenses, it also offers financial security and peace of mind. Consequently, insured employees feel less stressed and can focus more on their work; they know they are protected against high medical costs.
This works to your advantage because healthy, less stressed and more focused individuals make productive employees. They are absent less frequently and tend to work faster, too.
3. Enhance Job Satisfaction and Loyalty
Employee benefits like insurance make employees feel valued, and employees who feel valued and cared for tend to be loyal to their employers and satisfied with their jobs.
Satisfied and loyal employees are good for business. They are engaged, motivated, and more likely to go the extra mile for your business. There’s also a higher chance they’ll stay with you for a long time, so job satisfaction and loyalty are positively associated with retention.
4. Legal and Financial Benefits
Providing employee insurance as a benefit also has legal and financial ramifications. Employee insurance – particularly employee medical insurance – is compulsory in many regions globally.
For instance, employee health insurance is mandatory in Dubai and Abu Dhabi. Starting 1 January 2025, employee medical insurance will become a legal requirement across the United Arab Emirates.
Therefore, businesses benefit from providing employee insurance because it ensures compliance and protects them from suits and fines. In some parts of the world, employee insurance can even lead to government subsidies and tax incentives.
5. Improve Company Reputation
Excellent employee benefits can help build your company’s reputation. This contributes to a business’s ability to attract and retain employees, and it can also lead to better sales, more clients or customers and profitable ventures with organisations that work only with responsible, ethical and trustworthy partners.
Employee Health Insurance
You can provide your employees with whatever insurance benefits you want, but be sure to provide at least medical insurance.
Employee health insurance provides employees with coverage for expenses incurred due to qualified medical treatments and procedures obtained for qualified medical conditions. They have the following typical characteristics:
- Premiums: The employer pays the health insurance premiums to maintain their employees’ insurance coverage. Employers typically provide basic health insurance benefits, with benefit limits and inclusions possibly increasing according to role and tenure. Employees may contribute additional premiums to upgrade their insurance coverage or include family members in their health policy.
- Coverage: Medical insurance for employees covers medical services like doctor visits, hospital stays, diagnostic procedures, surgeries, prescription drugs, and preventive care.
- Network of providers: Insurance plans usually require employees to utilise a specific network of medical providers and facilities.
- Deductibles and copayments: Employees may need to pay up to a fixed amount (deductible) before the insurance company starts covering their healthcare costs. They may also need to pay their share (co-pay) of specific medical services.
- Exclusions: Health insurance plans do not cover specific conditions, treatments and procedures.
- Policy limits: Health insurance plans typically have maximum benefit limits that refresh yearly. Claims count against this limit.
- Preventive care: Insurance plans may also cover preventive care, such as vaccinations and health screenings.
Insure Your Employees
Insurance is a valued employee benefit, and it brings a business many benefits, including improved employee attraction and retention rates. Talk to an insurance company in the UAE for your employee insurance options.
