Updated: December 12, 2019

Private Business Health Insurance

Considering private business health insurance? In this article we'll explore what you'll need to consider, and how to find the best policy for your business

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Richard Angliss

Author: Richard Angliss - Finance Expert

Updated: December 12, 2019

Many British businesses take out private health insurance to provide cover for their employees, but what is the best policy for your company and how do you find it in such a vast market?

In this guide, you’ll learn how private medical insurance for business works, how it varies based on the size of your firm, and how to track down the best deals.

What is business private health insurance?

Business private health insurance is a type of policy that a company might purchase to provide medical cover and benefits for their employees. This can be paid for in pre-tax money through the firm’s business account. They are used by businesses large and small to incentivise their people and look after them when they are ill.

How does it work?

Your limited company takes out a group health insurance policy that covers your staff when they need treatment.

There’s also private insurance for business owners. For example, if you owned your own business, you could buy a policy that covers your staff, and then a separate, enhanced policy that covered you.

In both instances, the business ‘owns’ the policy, not you, and it counts as a ‘benefit in kind’ for tax purposes.

What does it cover?

What your policy covers will depend on the level of cover you buy. Examples of things that are more commonly covered include stays at private hospitals, diagnostic tests, specialist consultations, and treatment for short-term acute medical conditions.

Things that are less-often covered include long-term, chronic conditions (though cancer is a regular exception), cosmetic procedures, and pre-existing conditions. It’s worth noting that you can often upgrade your policy to cover some or all of these things, and there are even providers who can put together a bespoke package for your business, based on the company’s specifications.

Make an enquiry and we’ll introduce you to a broker who can help you determine what kind of health insurance package your firm needs and identify the best provider to put it together.

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How does private health insurance for small companies work?

It works in much the same way as it does for larger operations, but you may need a bespoke package based on the size of your company as well as the needs of your staff. There are lots of private health insurance deals for small business owners, with surprisingly flexible terms and low pricing.

If you want to get small business private health insurance, it’s worth speaking to an expert broker. They can help you to find out exactly the cover that you need, and the very best deal on that cover.

The independent advisors that we work with have helped arrange private health insurance for small businesses across the country.

What are the costs of private business medical insurance?

In the UK, the costs for business private medical insurance depend on a number of different factors.

These include (but are by no means limited to):

  • The company itself, and the level of service it provides: All things being equal, some companies are more expensive.
  • How many employees you wish to cover: The more people you want to cover, the higher the overall cost.
  • The level of cover you wish to take out: When it comes to the kind of cover you want, there’s quite a lot of variety in private business health insurance in the UK. Most policies have a basic level of cover that is reasonably extensive, though if you pay extra you can increase the amount of cover and additional services available to you.
  • If you want any extra perks: Many companies offer additional perks, such as access to specialists (like nutritionists and health coaches) or onsite wellness consultations and workshops.

Tax rules for business private health insurance

There are a few tax implications to bear in mind when considering private health insurance for your business. You can read on for an overview of the rules but keep in mind that these only provide an outline – if in doubt, contact HMRC or speak to an expert.

Health insurance is a deductible expense

As such, the money you spend on your business’ health insurance can be offset against your taxable profits.

Health insurance needs to be declared as a ‘benefit in kind’

As it’s paid through your company’s pre-tax earnings, and paid alongside your employee’s salary, health insurance needs to be declared as a ‘benefit in kind’ on a P11D form. Depending on the structure of your business, this can have tax implications both for you, and for your employees.

Health Insurance can incur Insurance Premium Tax (IPT)

Like other kinds of insurance, business health insurance is subject to IPT under terms set out by the government for insurance products. The latest rates for this tax can be found on the government’s website.

Why use a broker for business private medical insurance?

There are a number of benefits to working with an expert broker. In no particular order, these include:

They can find you the best deal from the entire market

Even if you were to try to compare the entire market by yourself (which would be time-consuming, to say the least), it’s unlikely that you’d be able to find the best deal for your business.

Which is where an independent broker comes in. An independent broker has access like no other – from broker-only deals offered by major market insurers, to little known business insurers, your broker will scour the market to find you the very best plan.

Simply put, using a broker can save you time, money and potential disappointment. They will compare business private medical insurance quotes across the whole of the market on your behalf.

Expertise and years of experience

But it’s not just about connections. A broker also has the know-how to spot market trends and a great deal. By working with you, they can make sure that you’re not overpaying for features you’ll never need – or leaving your business vulnerable through underinsurance.

Personalised service and support

A great broker knows that happy clients are repeat clients. As such, they’ll do their best to build a long-lasting relationship with you, and provide as much help and value as they can.

They’re a phone call, or meeting away – and there to provide support all throughout the year – not just when you need to renew your policy.

Help with your claims and paperwork

Leading on from above, a good broker can help you when it’s time to make a claim, and having them deal with the insurer on your behalf can save you a lot of hassle. Brokers can negotiate for the removal of exclusions in your policy, or help you when your appeal is rejected.

Talk to a business health insurance expert today

If you have questions about private health insurance for UK business and want to speak to an expert for the right advice, call Online Money Advisor today on 0808 189 0463 or make an enquiry online.

Then sit back and let us do all the hard work in finding the broker with the right expertise for your circumstances. We don’t charge a fee and there’s absolutely no obligation or marks on your credit rating.


Can I get private health cover with my business insurance?

Yes. Many providers are happy to bundle health cover along with standard business insurance, and may even offer you a better deal to do, so get in touch if you’d like to know more.

Who offers private health insurance for business owners?

The majority of the major insurers in the UK offer private medical insurance for business. Market leaders in the UK include Vitality and AXA but be sure to seek advice before you approach a provider directly.

If you go direct to one of these companies, you will only have access to their products and could end up missing out on a better deal elsewhere. Make an enquiry and we’ll refer you to a specialist broker who will compare the entire market to find a policy that’s bespoke to your business’ needs.

How do I get the best private medical insurance for a small business?

The top private health insurance for business in the UK is not provided by any particular company. Instead, the best insurer for you depends upon your unique circumstances and what, exactly, you want out of a policy.

Can I get private health insurance for a one-person business?

Yes. You could use a comparison site to find the best deals for a one-person business, but you’d be likely to miss some of the most favourable rates – as these sites don’t cover the whole of the market, and tend to put companies that they have agreements with first.

The best way would be to speak to an expert, independent broker, who can do a comparison of the entire market, precisely tailored to your circumstances. That way you know that you’ll get the very best deal available to you.

Can I get private medical insurance for a family business?

Absolutely. It should be no different than getting medical insurance for any other kind of business.

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Richard Angliss

Richard Angliss

Finance Expert

About the author

Richard Angliss has made a career in financial services which stretches over 40 years.

His early career was spent learning about the various financial products and applying them to prudent advice, working for one of the largest life assurance and investment firms. After that he joined the financial services arm of a very well-known firm providing independent advice to their 8 million customers.

For the last 20 years he has been involved in building software solutions that help Advisers and clients work together to achieve good financial outcomes and helping to set up three independent advisory firms. He also has written many articles for financial services publications and provided commentary for newspaper journalists.

At an early stage in his career he realised the great satisfaction that comes with being able to help people achieve their goals and protect their families. “Regulation of financial services has hugely impacted on ensuring people get appropriate advice. The issue these days is access to that advice and just as importantly regular reviews to make sure that everything stays on track”.

With the growing development of online resources such as Online Money Advisor he sees a great future for people to access advice to make their pension and investment work harder for them.  Plus, of course, to ensure they have insurance products in place that will be required when unforeseen events happen.

He knows getting that balance right is crucial to prudent financial planning and the wellbeing of individuals and their families.

FCA Disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms that are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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