Medical insurance ‘beneficial’ for SMEs

Small business owners can benefit by offering their employees private medical insurance, claim industry experts.

The Association of British Insurers (ABI) says that private medical services can ensure that staff get the best treatment and help them to return to work earlier.

Spokesperson for the ABI Jonathan French adds that it is a tool which can be used as an incentive for staff recruitment and retention.

He comments that SMEs can particularly benefit from providing such motivation for staff.

French explains: ‘Losing one out of four employees for a long period of time is going to hit a company of that size harder than it would be if a company of 100 were to lose one person for the same period of time.’

Although some firms may be concerned that the cost of providing cover could outweigh its benefits, there are specialist packages for small businesses, he concludes.

Working for a Healthier Tomorrow, a report produced by the government, found that workplace ill health costs business the same as the entire NHS running costs of £100 billion each year.

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