Too many people believe that because health insurance is expensive, it’s a luxury. This is not just a misconception, it’s a mindset that could doom your business before it gets off the ground.
Imagine this scenario. You have a great idea for a business and just one year later the business is coming together. By now, you, your partners, and your staff have put a lot of time and financial resources in to the business and to turn back now would represent a large scale financial loss. The longer you work, the more money you pay out but coming in to year two, the unthinkable and unexpected happened.
On the way to a meeting you are involved in a car accident and your injuries are substantial yet not life threatening. You didn’t have insurance because you were unemployed and putting all of your money in to startup costs for your business.
The amount of money you have in hospital bills quickly reaches five figures and without health insurance, you are forced to pay it. This leave you no more money to put in to your small business and because of your injuries, you are unable to continue building your business until your recovery, slated to take six months.
This is only one reason that your small business needs health insurance. Not only are you important to the growth of the business, but there may be others on the team whose untimely illness or injury could cause the growth of your business to stop even if the doors of your small business have already opened.
When you’re considering small business health insurance, a high deductible plan will save you a large amount of money. Look for a $1,000 or $2,000 deductible instead of a plan that covers everything with only a small deductible.
Don’t forget about your employees. Especially with small business where important tasks may rest on one or a handful of employees, if they get sick, it could adversely affect your business especially if that employee handled the primary contact and logistics with your customers.
When deciding how much of the costs to pay, one common strategy is to pay for health, vision, and dental for a single employee. If the employee has other family members, ask them to pay the extra costs. Also have more than one option available to employees so they have a say in the level of the insurance they can receive.
Finally, review your insurance plans annually and don’t feel a sense of loyalty to your insurance agent or company. If you can get a better premium through a different company for a year, go with it.
Health insurance for your small business isn’t a luxury. It’s a necessity and without it, a business with a lot of potential could be out of business if you or another key person becomes sick or injured for the long term. Health insurance doesn’t just protect the health of the person, it also protects the health of your business.