Buying a Home
Remortgaging
Landlord
Specialist
Secured Loans
Debt Consolidation
Conveyancing
Finding a Solicitor
Health Insurance
Standard cover typically costs £25-£80 per employee monthly, with comprehensive plans from £90-£150+. Compare providers and find cover that fits your team and your budget.
Small business health insurance for standard cover typically costs £25-£80 per employee monthly, rising to £90-£150+ for comprehensive plans with fuller outpatient and mental health cover. Premiums are corporation tax deductible, making it a tax-efficient way to support your team.
Exact premiums depend on your employees' ages, chosen cover level, location and industry. Speak to an advisor to compare quotes based on your specific circumstances.
Small business health insurance has moved from a nice-to-have to a genuine priority for many UK employers. Understanding why can help you decide if it's right for your business.
The NHS waiting list stood at around 7.4 million patient pathways in late 2025, according to NHS England data. That's an improvement on the peak of 7.7 million in September 2023, but millions of people still face long waits for treatment.
The NHS 18-week treatment target hasn't been met since 2016. Currently, around 60% of patients start treatment within 18 weeks, well below the 92% constitutional standard. For your employees, that can mean weeks or months waiting in pain or with reduced productivity.
Private medical insurance (PMI) gives your team a way to bypass these waits. An employee needing a hip replacement might face 18 months on the NHS but could see a specialist within weeks with private cover.
In a tight job market, benefits matter. Research from the Association of British Insurers found that 57% of people surveyed saw health insurance as a key part of an employee benefits package. For small businesses competing against larger firms with bigger salary budgets, offering health cover shows genuine commitment to employee welfare.
Staff who feel valued are more likely to stay. Health insurance tells your team their wellbeing matters, and that can be the deciding factor when they're weighing up job offers.
Absence costs money. Stress, depression, or anxiety accounted for 16.4 million working days lost to work-related ill health in 2023-24, according to ONS data. Musculoskeletal disorders accounted for another 7.8 million days lost.
With private health cover, employees can access faster diagnosis, quicker treatment, and preventative care that stops problems escalating. Getting an employee back to work weeks earlier than they'd return via NHS treatment can more than offset the cost of the premium.
Business health insurance premiums are an allowable business expense for corporation tax purposes. This makes it one of the most tax-efficient ways to invest in your team's wellbeing.
You're essentially getting tax relief on something that benefits both your business and your employees, which matters when every penny counts for a small business.
Is it right for you?
Speak to an advisor about your team's size, budget, and priorities before comparing policies.
Before comparing providers, it helps to understand how small business health insurance actually works. It isn't complicated once you know how the pieces fit together.
Private medical insurance (PMI) covers the cost of private treatment for acute conditions - illnesses, diseases or injuries that are likely to respond quickly to treatment. This includes conditions like:
PMI complements the NHS rather than replacing it. Your employees still use the NHS for GP visits, chronic condition management (such as diabetes or asthma), and emergency care. Private cover kicks in when they need specialist treatment that would otherwise mean joining an NHS waiting list.
In-patient and day-patient treatment covers hospital stays for surgery, cancer treatment, or other procedures requiring monitoring, including consultant fees, nursing care, accommodation, and medication.
Out-patient treatment covers consultations with specialists, diagnostic tests, and some therapies without hospital admission. This is often an optional add-on but increasingly included in mid-tier plans.
Cancer care is included in most policies, often covering drugs and treatments not always available on the NHS.
Mental health support is increasingly important, with most modern plans including access to mental health pathways, counselling, and talking therapies.
Digital GP access gives employees 24/7 access to virtual GP consultations through an app, so they can get medical advice without taking time off work.
Understanding exclusions matters just as much as knowing what's included:
Pre-existing conditions - conditions your employees had, or showed symptoms of, before joining the policy are typically excluded, at least initially. Some underwriting methods provide a route to eventual coverage.
Chronic conditions - long-term conditions like diabetes, asthma, high blood pressure, and arthritis aren't covered because they can be managed but not cured. These remain with the NHS.
Routine care - GP visits, routine check-ups, and vaccinations (outside policy perks) aren't covered.
Pregnancy and childbirth - standard maternity care isn't included, though complications might be.
Cosmetic procedures - unless medically necessary, cosmetic surgery isn't covered.
The claims process is straightforward:
Most insurers now offer apps and online portals that make this process quick and simple.
How your policy assesses your employees' health history significantly affects both premiums and cover. You'll need to choose an underwriting method when setting up your scheme.
Underwriting options
Full medical underwriting
Employees declare their complete medical history when joining, and the insurer excludes any pre-existing conditions from cover. Premiums are typically lower because risk is assessed clearly upfront, though there's more paperwork at enrolment and pre-existing conditions are excluded from day one. Best for businesses wanting lower premiums who are comfortable excluding pre-existing conditions.
Moratorium underwriting
There are no medical questions at enrolment. Instead, the insurer checks medical history when a claim is made, typically excluding any condition treated, medicated, or symptomatic in the past five years (timeframes vary by provider). Enrolment is faster and simpler, though exclusions only become apparent at claim time. Some pre-existing conditions can become covered after a waiting period, usually two to three years symptom-free. Best for businesses wanting simple setup who accept that exclusions apply at claim stage.
Medical history disregarded (MHD)
Available for larger groups, typically 15+ employees though some providers offer it for smaller groups, MHD ignores all pre-existing conditions so everyone gets the same cover regardless of medical history. It offers the highest level of cover and is simple for employees, but premiums are higher to reflect the increased risk, and it isn't available to all businesses. Best for businesses wanting comprehensive cover for everyone, including those with existing health issues.
Continuing medical exclusions (CME)
A middle ground for businesses switching providers: employees moving from another insurer can keep their existing cover level without new exclusions being applied. Best for businesses switching providers who want to protect employees' existing coverage rights.
After looking at cover levels, pricing structures, and what each insurer offers small employers, these providers consistently stand out for small business health insurance.
Aviva's Solutions plan is designed specifically for small and medium-sized businesses, combining comprehensive cover with competitive pricing.
What stands out:
Best for: businesses looking for a straightforward, cost-effective policy from a well-established provider.
Considerations: administration can feel slightly dated compared to newer digital-first providers, with some processes still involving paper forms.
AXA's small business health insurance covers 1-249 employees with highly modular plans, so you build exactly what your business needs.
What stands out:
Best for: businesses wanting to build a bespoke package rather than accepting a one-size-fits-all policy.
Considerations: the modular approach means you need to think carefully about what to include - it's not as plug-and-play as some competitors.
Bupa is the UK's largest private healthcare provider, with an extensive hospital network and strong brand recognition.
What stands out:
Best for: businesses wanting a well-known brand with comprehensive, joined-up care.
Considerations: often more expensive than competitors, so the brand premium may or may not be worth it depending on how much your employees value the Bupa name.
Vitality directly links health insurance to healthy lifestyles, with a model that rewards employees for being active.
What stands out:
Best for: dynamic, modern businesses wanting to build a culture of wellness and reward healthy behaviour.
Considerations: the rewards system only delivers value if your team engages with the app and tracks their activity.
WPA (Western Provident Association) is a not-for-profit insurer known for comprehensive cover and customer service.
What stands out:
Best for: businesses prioritising depth of cover over cost, with a customer-focused mutual insurer.
Considerations: premiums tend to be higher than some competitors, and it may be more cover than some businesses need.
Equipsme is aimed at businesses on tighter budgets, with plans designed to make private healthcare more affordable.
What stands out:
Best for: budget-conscious businesses wanting affordable access to private healthcare.
Considerations: lower-tier plans have real limitations, so check exactly what's included at each level before choosing.
Providers
Understanding true costs helps you budget accurately and compare options properly.
Several factors affect how much you'll pay:
Based on current market data:
Example costs by business size:
These are estimates - actual quotes depend on your specific employee demographics and chosen options.
Insurance Premium Tax (IPT) is currently charged at 12% and added to your premium. Quotes may or may not include IPT, so check before comparing.
Annual increases - premiums typically rise each year due to medical inflation and claims history. Budget for annual increases in the region of 5-15%.
Benefit in kind tax - employees pay income tax on the value of their health insurance benefit, and you'll need to report this via P11D forms.
Employer National Insurance - you pay Class 1A National Insurance on the benefit value.
For your business:
For employees:
Example calculation: if your business pays £600 a year for an employee's health insurance, a 25% corporation tax rate saves you £150, bringing the net cost to £450. A basic rate taxpayer would pay around £120 a year in additional income tax on the benefit. Despite the tax implications, most employees still value health insurance highly - faster access to treatment tends to outweigh the modest tax cost.
Always check whether a quote already includes Insurance Premium Tax. A price that looks cheaper than a competitor's sometimes excludes IPT, so you're not comparing like for like until you check the small print.
Small businesses can access more competitive rates with the right approach. Using a broker can help - we're paid commission by providers when a policy completes, though this doesn't affect the price you pay or which options we recommend.
Reduce your premium
Getting health insurance for your team is straightforward. Here's what to expect.
How it works
Gather your information
Before getting quotes, you'll need the number of employees to cover, their dates of birth (or at least age ranges), your business postcode, your preferred level of cover, and your budget per employee. You don't need individual medical histories for initial quotes, though you will need these for full medical underwriting policies at application stage.
Get quotes
You can get quotes directly from insurers or through a broker. Brokers typically offer quotes from multiple providers in one place, expert guidance on cover options, help navigating policy differences, and negotiating leverage.
Choose your policy
Compare quotes based on cover level, premium cost, excess options, the provider's hospital network, additional benefits like digital GP access, and customer service reputation. Don't just choose the cheapest - the best policy balances cost with cover that your employees will actually value and use.
Complete the application
You'll need to confirm employee details, choose your underwriting method, select excess levels, add any family members if you're offering this option, and complete payment details. For moratorium underwriting, employees don't need to provide medical information at this stage. For full medical underwriting, each employee completes a health questionnaire.
Receive your documents
Once accepted, you'll receive policy documents, employee welcome packs, claims contact information, and app login details if applicable. Make sure employees know how to use their cover, since clear communication helps them get value from the benefit and helps you get value from the investment.
Avoid these pitfalls to get the most from your health insurance investment.
The cheapest policy isn't always the best value. A policy that excludes mental health support might seem affordable until an employee needs it and discovers they're not covered. Understand what you're getting, not just what you're paying.
If employees don't know they have health insurance, or don't understand how to use it, you're wasting money. Create clear guidance, run an introduction session, and remind people regularly that the benefit exists.
Premiums often jump significantly at renewal. Review your policy annually, get competitive quotes, and negotiate. Loyalty doesn't pay in insurance - being willing to switch does.
Mental health issues are a leading cause of workplace absence. Policies with strong mental health pathways, including direct access to counsellors without a GP referral, provide real value. Don't skimp here.
After a year, ask your insurer for claims data. Understanding what your team actually uses helps you make informed decisions about cover levels and add-ons at renewal.
Small business health insurance isn't the only option. Consider these alternatives if PMI doesn't fit your budget or needs.
Cash plans pay fixed amounts toward everyday health costs like dental check-ups, optical care, and physiotherapy. They're much cheaper than PMI, often in the region of £5-£15 per employee monthly, but don't cover hospital treatment or specialist consultations. Best for businesses wanting to offer something but unable to afford full PMI.
EAPs provide confidential counselling and support services, typically including mental health support, financial guidance, and legal advice. Many are surprisingly affordable and address wellbeing without the full cost of health insurance. Best for businesses prioritising mental health and employee support over medical treatment access.
Standalone digital GP services give employees 24/7 access to doctors without full PMI, often available from around £5-£10 per employee monthly. Best for businesses wanting to offer convenient GP access without comprehensive health cover.
Some businesses set aside budget for specific employee health needs rather than paying ongoing premiums. This works if you're willing to cover treatment costs when they arise. Best for very small businesses with healthy teams and financial reserves to cover unexpected costs.
Having helped many small businesses find health insurance, here are the insights that make the difference.
Why do you want health insurance? If it's purely about recruitment and retention, focus on policies with strong brand recognition and employee-facing features. If it's about reducing absence, prioritise fast treatment access and mental health support.
If you're new to offering health insurance, start with a mid-tier policy that covers the essentials well. You can always add features later once you understand what your team values and uses.
Employees often assume health insurance covers everything. Be clear about what's included and excluded. Managing expectations prevents disappointment and helps people use the benefit effectively.
Markets change, new providers emerge, and your team's needs evolve. Spending a few hours reviewing options each year can save significant money and keep your cover relevant.
If you're setting up your first policy, resist the urge to cover everything from day one. Start with a mid-tier plan that handles the essentials well, then use your renewal data to decide what's actually worth adding - most businesses find their team barely touches half the extras they paid for initially.
Independent guidance if you want to look beyond our comparison.
Common questions
Yes. Most providers offer policies for businesses with as few as 2 employees. Some insurers, including Vitality and AXA, cover businesses with just 1 employee, such as sole directors and their spouses. Equipsme requires a minimum of 2 employees. You don't need to be a large corporation to access group health insurance.
Most insurers accept businesses with 2-249 employees in their small business category. For very small businesses with 1-4 employees, policies designed for micro-businesses or sole traders are often available. Check individual provider requirements, as they vary.
Yes. Premiums are an allowable business expense for corporation tax purposes, so you can deduct the cost from your taxable profits. This effectively reduces the net cost by your corporation tax rate. That said, employees pay income tax on the benefit value, and employers pay Class 1A National Insurance on it.
Typical costs range from £25-£80 per employee monthly for standard cover, rising to £90-£150+ for comprehensive plans. Exact premiums depend on employee ages, chosen cover level, location, and industry. Younger workforces in lower-risk industries generally pay less.
Yes. You can choose to cover only certain groups, such as directors, managers, or senior staff. This is called selective eligibility and is common for businesses wanting to offer health insurance as a retention tool for key personnel without covering everyone.
When employees leave, they're typically removed from your policy and your premium is recalculated. Most insurers allow leavers to switch to an individual policy without new medical underwriting, so they don't lose cover. Check your specific policy terms.
Yes, almost always. Medical inflation, rising treatment costs, and claims history typically drive annual increases. Budget for increases in the region of 5-15% a year, and review and negotiate at renewal to help minimise rises.
Standard private medical insurance doesn't cover pre-existing conditions, only new conditions arising after the policy starts. Larger schemes, typically 10 or more employees, can access Medical History Disregarded underwriting, which covers pre-existing conditions from day one.
Most providers allow employees to add partners and children to the policy for an additional premium, typically £25-£85 per family member monthly. This is usually optional, so you can choose whether to offer family cover or keep the policy employee-only.
From the policy start date. There's no waiting period for conditions that develop after joining. For pre-existing conditions under moratorium underwriting, the waiting period depends on your policy terms, typically two to five years symptom-free before cover applies.
Usually, yes. Private treatment typically requires a GP referral confirming that specialist care is needed. Most policies now include digital GP services that can provide referrals quickly, avoiding traditional GP appointment waits.
Private medical insurance (PMI) covers private hospital treatment, specialist consultations, and diagnostic tests for acute conditions. Health cash plans pay fixed amounts toward routine costs like dental and optical care but don't cover hospital treatment. PMI costs more but provides more comprehensive protection.
It depends on your priorities. Aviva offers good value and simplicity. AXA provides flexibility. Bupa has the strongest brand and hospital network. Vitality suits wellness-focused businesses. WPA offers comprehensive cover. Equipsme is best for tighter budgets. Compare quotes based on what matters most to your business and employees.
Yes, but check your existing policy terms first, as some insurers apply penalties for early cancellation. When switching, look for providers offering continuing medical exclusions (CME) to protect employees' existing coverage rights.
You don't need one, but a broker can save time and money. They compare multiple providers, understand policy nuances, and often negotiate better rates than you'd get going direct. Their commission is usually paid by the insurer, so using a broker doesn't typically add to your cost.
What our clients say
Shortly after I spoke with Anna, she was also very helpful and made it effortless and a nice experience.
Had a really good experience regarding arranging a secured loan. They introduced me to a great advisor. Thanks for the help.
For once a loan transaction without stress and complications. Very impressed and highly recommended.
Thrilled to share my exceptional experience with Money Saving Advisors. The website made it incredibly simple and easy to connect with an advisor. They helped me find the best deal on my remortgage and secured a very competitive interest rate!
Great advice and money saved on mortgage.
I have previously declined a loan of the value I needed from various brokers, but this website found me a reputable broker with surprisingly decent rates.
Health Insurance
Protect what matters most. Our advisors compare plans from leading UK health insurance providers.
