During these difficult times it is important for businesses to consider your outgoings and whether you are getting the most from your business and employee protection. Organisations should really be reviewing their arrangements annually at worse bi-annually; if this has not been taking place there could be considerable savings to be made.
Let us start with some of the core employee benefits you may offer your staff such as a death in service scheme, group income protection or business health insurance.
David, Consultant at Drewberry commented 'Given the current climate firms are looking at ways they can make tangible savings easily, one such way is with a simple review of their existing insurance arrangements.'
1. Group life insurance is designed to provide an employee’s beneficiaries with a cash lump sum should they pass away whilst in service with your organisation. The benefit is normally structured as a multiple of salary which if structured correctly should pay a tax free benefit which does not form part of the deceased estates.
2. Group income protection is a much sought after benefit both by the employer and employee, it is designed to provide employees with a percentage of their salary should they be unable to work due to illness or injury for a prolonged period of time. Premiums can vary wildly depending on the scheme options chosen and the demographic of staff thus it is vital to approach a number of insurers when reviewing existing arrangements as the pricing will depend on the provider’s perceived risk.
3. Business private health insurance is a benefit which can prove very cost effective; we all know how expensive employees who are unable to work can be. Setting up a private medical insurance scheme can ensure your staff receive the highest quality medical treatment privately when they need it most, bypassing any NHS waiting lists.
With all these core benefits it is important to understand the options available to your business and ensure the policies are reviewed on an ongoing basis.
Over and above a core employee benefits package many organisations have other protection requirements to ensure the future of the business should a key employee or shareholder suffer a serious illness or worse death.
4. Shareholder protection insurance places a value on the individual’s shareholding should they pass away or become critically ill. Such protection allows the individuals beneficiaries to realise the cash value of the shares whilst the remaining share holders have the capital available to buy back the individuals share and ensure the business remains in safe hands.
5. Key man insurance allows a business to protect the value of key members of staff should they suffer a critical illness or worse, death. From covering loss of profits to the costs of recruiting and training a replacement key person insurance allows a business to stay on the straight and narrow should such an unfortunate event occur.
In the world of business where nothing stays the same for very long it is vital to ensure your employee benefits offering and your business protection fits your with where your business is today.
> Give this post the thumbs up or thumbs down
