Most business owners want to be able to provide their employees with an insurance plan. Health care costs, however, can be some of the biggest expenses a business will take on when it’s just starting out. In order to find the right balance, it’s important to set off on the right foot. There are many things that business owners need to think about when considering an insurance policy, but here are some of the top tips you need to know before you ever head down that road:
Providing insurance for employees takes up such a large percentage of your expenses that it’s incredibly important to have some professional guidance when you first get started. You may balk at the expense of hiring a consultant or working with a highly sought broker, but think of the financial catastrophe that could result in purchasing the wrong plan. Look into agents, brokers and consultants to find your best fit, and make sure to take your time interviewing each one until you find someone that makes you feel comfortable.
One huge mistake that first-time business owners make is forgetting to make a sound decision about their insurance budget before they start shopping around. It’s essential to look through all your books, run the numbers, and see what you can feasibly afford. Decide on a cut-off price and a desired price range before you ever speak to a broker so you know how to help them help you. It’s also a good idea to have your financial books on hand so you can answer any questions they may ask to give them a better idea of your financial picture.
3. Highly consider partially self-funded plans
There is no reason to go out of business trying to provide health insurance to employees. In fact, it may be the case that a far better plan could be agreed upon by employees paying a partial amount of the coverage. If you can provide employees with a much better health insurance package at a group rate than what they would likely be able to buy on their own, this is still a huge advantage to employees. There are many partially funded plans that can turn up greater benefits, lower premiums, and much more coverage than what you could purchase without employee involvement.