Small business is the backbone of job creation in North America. For the sake of this discussion we will talk about businesses with 20 employees or less. Talent in small business is very important. In order to attract and retain good employees, a small company often has to compete against large companies for salaries and benefits. What, then comes to a person's mind when they think of "benefits"?
There certainly are benefits like sick days, a vehicle allowance, child care, flexible hours, etc, but again, for the sake of this discussion we will address group insurance benefits. Group benefits generally deal with the coverage for life insurance, short and long term disability, prescription drugs, medical, dental, and now often times, critical illness.
Independent brokers have access to all of the benefit providers in Canada. Some companies specialize in group insurance plans as small as one person. People never consider "group" as one person, but if you think of it, most companies are started with one person. Often times spouses start a business together, but for "group insurance" one is insured as the main insured and the other is a dependent. Many companies will not insure just a husband and wife as a "group".
In the past, insurance companies were unwilling to take a look at a company for group insurance unless there were at least three people and those three people had to be unrelated. Things have changed. Insurance Brokers have access to any number of markets which will provide benefits specifically for these situations, but there may be some limitations attached.
Once a company has five employees, they can have a plan designed which can often compete with very large companies, in terms of types and amounts of benefits, and yet be affordable.
If your small company has not considered benefits before, or if you have not reviewed your current package for a couple of years, it is time to take another look. Make sure you are offering competitive packages for employees, and also be sure that the price you are paying is competitive. Your Independent Broker should take a look at the entire marketplace to insure you have the right choices to suit your needs and budget. More information can be found on our website.
Author: John Kovats, CLU
April 2010
Florida Auto Insurance
