Small business health insurance and business insurance for larger businesses is an increasingly popular and valuable benefit offered by many American employers. However, the process of purchasing it — especially for smaller companies — can be an exhausting and quite burdensome experience. That is, unless you have the right information to get you started. Hopefully, below will give you a jumpstart on what you need to know and where you should turn for your small business health insurance needs.
We often hear the terms "agent" and "broker" used interchangeably when speaking about small business health insurance. However, in order to put you on the right path for your business insurance needs – understand that there are disparities between the two. To be precise, an agent represents an insurance company, while brokers correspond to the insured or policyholder. An "independent agent" is generally unaffiliated with any specific insurer, and represents a collection of companies.
Now that you have a clearer understanding of the terms, what’s best for you and your business? It is common practice for both small and large companies to reach out to insurance agents and brokers for business insurance and small business health insurances needs, as qualified, effective ones can simplify your business health insurance purchases and alleviate the inherent headaches along the way. They might also back you up if you happen to find yourself in business insurance and small business health insurance predicaments.
By offering small business health insurance and business insurance in general, you can significantly contribute to your bottom line through monthly and eventually, annual savings. One simple way to save and still retain important coverage for your employees is through what is known as a “high-deductible” plan. If your employees are healthy and generally don’t make frequent visits to the doctor, this type of business insurance may be a good option for you.
Although they will still face deductibles before coverage kicks in, employees will still be protected from the catastrophic consequences of not having any coverage in the event of a serious illness or life-altering injury.
A licensed (and only a licensed) agent is a good place to start, and can provide you with a wealth of information on high-deductible plans in your area for both business insurance, and if it applies, small business health insurance. This individual can possibly be a great help in determining whether a business insurance plan like the aforementioned “high-deductible” plan makes good business sense for you and your going concern. You can use the Vimo website to compare insurance plans, then request a quote right here. Up to three pre-screened, licensed brokers will compete for your business and contact you within 48 hours.
You may also be able to take advantage of tax incentives that may be available to you through business insurance and small business health insurance. Once again, ask your licensed agent for some information about this, as it could possibly save you large dollars during the course of the next fiscal year. You can also learn more about the tax treatment of various insurance plans by visiting Vimo’s reference section, right here.
In addition, it’s wise to spend some time on your own learning about the tax benefits available to you as a business owner when providing group health insurance prior to meeting with the agent, as the first one you turn to may not be the most knowledgeable.
By doing so, you may learn about smart moves you can make to help your small business stay healthy (no pun intended). For example, you may be able to fully deduct the premiums paid on your group health plan through your business insurance, and by offering coverage as part of a total compensation package; you may be able to significantly reduce your payroll tax.
Health Savings Accounts (HSAs) can provide significant tax breaks for you and your employees. These tax-favored accounts can be used with certain high-deductible plans and your contributions to them are exempt from payroll tax. Talk to a your agent about HSAs and HSA-eligible plans, as this and other types of these incentives can help contribute to the overall affordability of your group health insurance plan for now and into the future.
