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Small Business Insurance 101

Employee Benefits

There are many things to consider when it comes to getting insurance policies that can help protect your employees and your business’ future needs. Learning about insurance can be a cumbersome task, but it’s important to understand the types of insurance that are critical for your business.

What types of insurance can you offer?

Health and Related Insurance

Group and individual health insurance are about people – you and your employees. In the case of an accident or illness, these plans can help pay for qualified medical care for the policyholder and their dependents.

  • Group Health, Accident, and Life Insurance: Gives yourself and your employees access to coverage including medical, dental, vision, life, and short- and long-term disability insurance.
  • Voluntary and Supplemental Insurance: Voluntary insurance allows your employees to help determine their own insurance benefits, which they pay for out-of-pocket. Voluntary insurance may be used to establish your company's benefits package or supplement your current group benefits.
  • Individual Medical Insurance: Individual medical insurance can help keep rising healthcare costs in check through health, vision, dental, life, and short- and long-term disability plans for you and your family.

Property and Casualty Insurance

Unlike health insurance, which protects people, property and casualty insurance covers the business – the owner, the business site, liability protection, and the physical assets that are vital to the success of your business.

  • Workers' Compensation Insurance: If you or your employees become disabled due on an on-the-job injury or illness, workers’ compensation insurance allows you to provide wage replacement and medical benefits to the affected employee while protecting you and your business from costly liability litigation.
  • Business Insurance: These plans include several policies that protect your business from circumstances that could negatively affect your operations. Policies include property, casualty, liability, commercial auto, and more.
  • Cyber Insurance: It’s estimated that half of small- to medium-sized businesses have been hacked or had their systems compromised in the last 12 months. New types of coverage are available that protect your company’s digital assets in the event of a cyber-attack.

How do you decide whom and what to cover?

Factors to consider when deciding who to cover

Before you can decide which types of insurance to offer, you'll need to know whom and what you want to cover. There are many factors to take into account, some of which include certain government-mandated lines of insurance, business stage, and whether you want to pay for your employees benefits. You also should evaluate whether you want to utilize insurance as a way to attract and retain employees. While some decisions on a purchase of coverage are resolved immediately, there are many factors that need to be evaluated and acted upon on an ongoing basis. The best way to help yourself is to utilize a licensed insurance agency to help you with your insurance offerings.

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This website contains articles posted for informational and educational value. Paychex is not responsible for information contained within any of these materials. Any opinions expressed within materials are not necessarily the opinion of, or supported by, Paychex. The information in these materials should not be considered legal or accounting advice, and it should not substitute for legal, accounting, and other professional advice where the facts and circumstances warrant.