What is business health insurance?

Business health insurance is like having a fast pass to healthcare for your team. It can give your employees quicker access to the treatments, consultations and diagnostics they need – often without the wait times that come with the NHS.

There are different plans and options depending on your team’s size. Small business health insurance is designed for teams of up to around 250 people, while group health insurance usually applies to larger organisations with 250+ employees.

Think of it as a safety net, catching your team when illness or injury strikes and helping them bounce back faster. Not only does it support their wellbeing, it can help address the issue of absenteeism for your business. It’s growing in popularity too. The Association of British Insurers reports that a record 4.7 million people got private medical Insurance through their employer in 2023, marking the highest number in over 30 years.

Why have business health insurance?

When your team is healthy, your business runs smoother. But NHS waiting times can keep employees off work for longer than necessary. Business health insurance can fast-track things, meaning your staff can see specialists, get diagnoses and start recovery sooner. That potentially means fewer sick days and a more productive team.

It’s also a great way to show your employees you’ve got their backs. When people feel valued, they’re more likely to stick around, and private healthcare is a perk that can make a difference. It helps ease worries about long waits for treatment and shows your team you care about their wellbeing.

And when it comes to hiring, it can be a game-changer. In a crowded job market, top talent looks for more than just a salary. An attractive benefits package can make your company stand out and give candidates another reason to say ‘yes’ to your job offer.

Key benefits at a glance:

  • Fewer sick days: Fast-track treatment potentially means employees get back to work quicker.

  • Better staff retention: A valued workforce can be a more loyal workforce.

  • Happier, healthier employees: Less stress, more job satisfaction.

  • Stronger recruitment appeal: A great perk to attract top talent.

  • Boosted productivity: Less time off = a more efficient team.

What does business health insurance typically cover?

Small business health insurance and corporate health insurance both tick a lot of boxes when it comes to keeping your team healthy and ready to tackle their day. Here’s a breakdown of what may be included for your team, for conditions covered by the business health insurance plan you choose:

  • Consultations with specialists: Your employees can get faster access to specialists for expert advice and tailored care.

  • Diagnostic tests, like scans and blood tests: Whether it’s an X-ray, MRI, or a quick blood test, your team can potentially get the answers they need without NHS delays, helping them move towards recovery faster.

  • Treatment for acute medical conditions: From treating infections to resolving injuries, employee health insurance can help your team bounce back from shorter-term conditions without unnecessary waits.

  • Inpatient and day-patient care: Covers hospital stays (overnight or same-day) including consultant fees, theatre costs, nursing care, prescribed drugs and even intensive care if required.

  • Comprehensive cancer cover: Includes access to specialist centres for diagnosis, drugs and treatments (including some not yet available on the NHS), ongoing funding for treatment, home chemotherapy options, emotional and psychological support, advice from oncology specialists, and end-of-life care if needed.

  • Mental health support: With access to counselling, therapy or mental health resources, your team can get the support they need to feel their best.

  • Physiotherapy: For aches, pains or injuries, physiotherapy or other therapies may be included, getting your employees moving comfortably again.

  • Access to health advice helplines: Sometimes a little advice goes a long way. 24/7 helplines let your employees talk to health experts for guidance and reassurance whenever they need it.

  • Virtual GP services: Who wants to spend hours trying to book a doctor’s appointment or sitting in a crowded waiting room? With virtual GP services, your team members can chat with a doctor quickly and conveniently, wherever they are.

Are pre-existing conditions covered?

This is an interesting one because, unlike individual health plans, some business health insurers will include cover for pre-existing conditions for an additional premium, so it’s worth checking what’s available. Coverage for your team can include pre-existing conditions such as Crohn’s disease, asthma, diabetes, hypertension and more, depending on the insurer you choose.

Other providers may offer cover for pre-existing conditions once a certain period of time has passed, say for example two years, without symptoms or any treatment or advice being required in that period. This may depend on the type of underwriting you select when you arrange cover, so make sure you read the terms carefully before deciding.

What’s not covered by business health insurance?

There are some things that health insurance for business owners and their teams typically doesn’t include, though exclusions tend to vary between providers and the level of cover you select. Knowing what is omitted from your chosen policy will help manage expectations for you and your employees. As a guide, business health insurance usually excludes the following:

  • Emergency care: Private health insurance - and UK health insurance in general - only covers non-emergency care.

  • Cosmetic procedures: Treatments purely for appearances, like nose jobs or facelifts, aren’t typically included.

  • Routine check-ups: Unless you add extras, regular health check-ups usually aren’t covered.

  • Dental care: Standard policies don’t usually include trips to the dentist, but some insurers do offer this as an add-on.

As you can see, it’s important that you compare business health insurance plans to make sure you get the level and type of coverage you are looking for.

How much does business health insurance cost?

The cost of business health insurance for small businesses or larger companies can vary widely depending on certain factors. For instance, your team’s size, the level of cover you want, and even where your business is based will all make a difference.

Here are the key factors that insurers consider:

  • Age: Insurers base your premium on the average age of your team. A younger average generally means lower costs, while an older mix can push premiums up.

  • Work environment: If your employees work in high-risk or physically demanding roles, you might see higher premiums.

  • Location: There may be a premium increase based on location, for example due to higher costs for treatment in London.

  • Group size: More employees generally means a lower cost per head.

  • Excess: The lower the excess, the higher the premiums will be.

As prices differ significantly between providers, the best way to find out how much medical insurance for employees will cost is to compare quotes from leading health insurance companies.

How to keep costs down

If you’re ready for a business health insurance comparison, cost is naturally going to be a key factor. But did you know, there are smart ways to lower your business health insurance quote while still providing great coverage for your team?

Here are some options to think about when choosing your plan and level of coverage:

The six-week option

Some insurers offer this option, which means that if the NHS can offer treatment for your employee within six weeks, they use their services.

Increase the excess

By raising the excess your employees pay when they claim, you can lower the premiums.

Choose a lower level of cover

More comprehensive policies with extras like outpatient care, dental, psychiatric support, physiotherapy and second opinion appointments may cost more.

Guides

Answering your questions about business health insurance

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Page updated on 4th September 2025, Reviewed by Richard Groom