Business Healthcare
Solutions for UK Companies
To minimise the business impact of health-related absences, we’ll find the right insurance to meet your needs and ensure business continuity.
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What is Business Healthcare Insurance?
Business health insurance (also known as company health insurance or group health insurance) is a policy purchased by employers to cover the cost of private medical treatment for their employees. It’s designed to reduce downtime caused by illness or injury and improve access to care, including shorter waiting times, a wider choice of treatments, and access to private facilities.
Employees can receive faster diagnosis, earlier treatment, and potentially better outcomes; all while your business maintains momentum.
Key Benefits of Employee Health Insurance
Investing in business healthcare brings tangible value to both employers and employees:
1. Attract and Retain Talent
A strong employee healthcare benefits package positions your company as a desirable employer, especially in competitive industries.
2. Increase Productivity
Prompt treatment helps staff return to work faster. Preventive health benefits reduce the chance of long-term illness.
3. Boost Morale & Loyalty
Providing healthcare perks for employees shows you value their well-being, enhancing engagement and satisfaction.
4. Manage Costs Effectively
Group health insurance premiums UK tend to be more affordable per head compared to individual plans. Some employers also save through health cash plan employee benefit schemes.
5. Tax Advantages
In many cases, premiums are tax-deductible business expenses. However, note P11D health insurance reporting obligations and employer NI on health insurance may apply. For more guidance, explore our Broadbench Guide To Tax Savings.
How does Business Healthcare Work?
When your business invests in a corporate healthcare package, you pay a monthly premium per employee. In return, your staff get access to a range of private healthcare services. These may include:
- Private hospital treatment
- Diagnostic tests and scans
- Cancer care
- Mental health support
- Virtual GP access (private GP cover for employees)
- Physiotherapy, therapies, and optional extras like business dental insurance
Most plans are flexible and can be adapted to include additional benefits such as employee mental health cover, health screening for employees, and international cover.
What is the Cost per Employee?
So, how much is health insurance for employees? That depends on your business type, team size, and the level of coverage.
- Small business health insurance plans can start from as little as £13 per employee per month for younger staff under basic plans.
- More comprehensive cover, including employee mental health benefits UK, outpatient care, and dental, can increase costs up to £80 per employee monthly.
Factors that affect your private medical insurance quote (business) include:
- Age and health profile of employees
- Number of staff
- Industry risk profile
- Optional extras (e.g., dental, travel, therapies)
- “6-week NHS rule” vs. full cover
We’ll help you understand your options and control costs without compromising care.
NHS delays have become a major challenge for UK employers. As of late 2025/early 2026, the NHS waiting list for hospital treatment in England is around 7.3 million total cases. Delays in diagnosis and treatment can impact not just individual health, but business performance. Choosing private medical insurance for employees ensures continuity of care, protects your operations, and shows you’re serious about staff wellbeing.
With growing interest in wellbeing perks UK, health cover is no longer just a benefit; it’s a competitive advantage.
Protect Your People, Power Your Business
Investing in business healthcare UK isn’t just about insurance; it’s about building a healthy, happy, and high-performing team.
Whether you’re seeking a better private medical insurance quote (business) or want advice on company health insurance tax benefits UK, our experts are here to help.
Tax Facts
Premiums
When a business pays for private medical insurance for employees or directors, the premiums are usually treated as an allowable business expense, so the company can claim corporation tax relief on the cost. However, the premiums are normally classed as a benefit in kind for the individual covered.
Employee / Director Tax
Because business healthcare insurance is a benefit in kind, the employee or director must pay income tax on the value of the premium. The employer must also report the benefit to HMRC (typically via P11D) and pay Class 1A National Insurance contributions.
Benefits Paid
Any medical treatment or claims paid by the insurer are not taxed again on the employee, as the tax charge applies to the premium rather than the benefit received.
Key Exception
If the policy is structured as a group scheme and offered as part of a wider employee benefits package, the tax treatment remains the same—but it can still be a cost-effective way to support employee wellbeing and reduce sickness absence.
All statements concerning the tax treatment of products and their benefits are based on our understanding of current tax law and HM Revenue and Customs’ practice. Levels and bases of tax relief are subject to change.
FAQs
How much does small business health insurance cost?
The cost varies based on several factors, including:
- Number of employees
- Company location
- Employee ages and family status
- Underwriting type, which depends on whether you already have health insurance coverage
Coverage options, excess levels, and hospital choices can be customized to fit your employees’ needs.
Is health insurance a business expense?
Yes. If you’re a director of a limited company or a sole trader, you may be able to claim business health insurance as a tax-deductible expense.
To qualify, ensure you purchase a business health insurance plan, not a personal health insurance plan, as personal policies may not be eligible for tax deductions.
How do I get health insurance for my small business?
Our expert advisers can help tailor a policy that meets your business needs. Contact us to discuss your options.
What does small business health insurance cover?
Coverage depends on your policy but can include private hospital treatment, specialist consultations, diagnostic tests, and mental health support. Some plans may also offer dental and optical care.
Can I cover family members of employees under a business health insurance plan?
Yes, many business health insurance plans allow employees to add family members at an additional cost. This can be a valuable employee benefit.
What happens if an employee leaves the company?
If an employee leaves, they can often switch to a personal health insurance policy without needing to reapply. You can also adjust your business policy to remove them from coverage.
Ready to secure the cover that’s right for you?
Fill out the form below to arrange a time to speak to a Business Healthcare Insurance expert.