By Erica Laceria on Apr 1, 2020 10:00:00 AM
As an insurance broker, you know that health insurance coverage is key to long-term health and financial stability. It turns out that most employees would wholeheartedly agree. Yet some business owners—particularly small business owners—often need your help to make that connection. Naturally, you should not sell health insurance to small businesses the same way you would to a larger business.
Let’s take a look at how both large and small businesses buy health insurance with and go over some tips that might help close those sales.
Large Business Incentives To Buy Coverage
For businesses that have 50 or more employees, three essential areas form the financial basis for buying health insurance: competition, attraction and retention of desirable employees, and keeping those employees healthy and on the job.
- Competition: One of a company’s assets includes the reputation of its brand. Companies that treat their employees well earn brownie points in the world of consumer response to brands. Conversely, companies that gain a reputation for mistreating employees are likely to find their consumer base thinning, especially if a competitor takes the high road when it comes to employee well-being.
- Attracting and retaining employees: For larger companies in a competitive field, success depends on hiring and retaining the best employees. As we know, employees look at company benefits as a critical part of their decision concerning where they choose to work.
- Keeping employees healthy: Larger companies view health maintenance and disease prevention as integral to their productivity and the health of their bottom line. They know that health insurance coverage is much more likely to keep those great employees healthy and working, or at least reduce time lost due to illness.
For larger companies, the decision to buy health insurance coverage for employees—whether or not there are legal incentives—is seen as a sound business decision.
How Small Businesses Benefit From Buying Coverage
Some small business owners get lost in the details of their day-to-day responsibilities and simply lose track of the longer-term path to sustainability for their business.
These business owners would benefit greatly from having an insurance broker who understands their financial picture, and how best to help them help themselves in the long run.
These tips should help the small business owner see the value in choosing to purchase health insurance coverage:
- If you need to grab their attention, ask them how a serious illness or accident to themselves or an employee would affect their business without health insurance coverage?
- Prevention is key. In a small business, employee downtime is much more critical than it is in a larger business. Show the business owner the connections between dental health and overall health, and how coverage plays a strong role in preventive care. Be sure to add that family members benefit, too, making it easier for their employees to reduce time lost on the job because they need to care for a family member who is ill.
- Talk about how offering health care coverage helps them attract and retain top employees.
- Seasonal employees may benefit as well.
- Explain that for this size business, you have options that are flexible and can be tailored to the owner's needs. It’s not a cookie-cutter, one-size-fits-all purchase.
- Tax incentives are typically available for small businesses that choose to offer group health care coverage.
- Best of all, you will be available whenever they need your personal assistance to explain coverage options to employees and, as options shift, to the owner as well.
Empathy goes a long way in demonstrating to business owners, large or small, that you know what their needs are and can help. If you build that personal relationship and show the owner and stakeholders that you have their long-term health in mind, they are much more likely to make the connection and buy the coverage they need. And make sure to check out our FREE guide on being a resource to HR stakeholders and benefits administrators!