Your company will be better protected from potential losses and liabilities if it has small business insurance. Business insurance can assist in covering claims resulting from professional errors and natural disasters. As well as bodily injuries and property damage. If you do not have this coverage for your company, you will have to to pay the cost of any claims out of your own personal assets. This forces the owners of many small businesses to make the difficult decision to permanently close their businesses. Continue reading this article if you want to learn how to obtain insurance for your small business.
Get Started
Looking for business insurance and making sure you’re getting all the coverage you need can get complicated. So, let’s break down what you need to do to start.
1.Collect information
Obtaining business insurance is as complicated as any other aspect of managing a company. In order to provide you with an insurance policy, insurance companies require a substantial amount of information about your needs, risks, coverages, and costs.
You might be familiar with some of it or have it handy. While other details might be trickier to track down. EZ can help in that regard. We have helped thousands of other customers through the commercial insurance application process. So, we know what is required of you and how to get it. Let’s go over the requirements so the application process goes as quickly and easily as possible.
Business Operation Information
Your insurance agent or company will need a thorough understanding of your company’s operations in order to provide you with an accurate quote. If you’re in the contracting business, for instance, it’s not enough to know that you’re an electrician. The percentage of commercial versus residential work you do, whether or not you use subcontractors, do you use ladders or scaffolding, do you install alarms, etc., are all relevant details.
The types of questions you’ll be asked vary widely by profession. It’s fine if you don’t know the answers right away. But you’ll save time and energy if you have a solid grasp of your operations before beginning the application process. In order to receive quotes from insurance companies based solely on operational exposures, you must be as specific as possible with your agent.
Ownership and Experience
Questions about yourself, such as how long you’ve been in business and how much experience you have, will be asked. As well as questions about your company’s operations. Your quote will be based on the information you provide to the insurance company regarding the business’s owners and, in some cases, employees. If your resume is strong, you may be able to negotiate a lower price.
Financial Data
Get some numbers ready. Your insurance agent or provider will inquire about projected earnings, employee headcount, outside vendors, and stock on hand. These estimates are predicated on the length of your policy, which may or may not align with your fiscal year. If your policy is audited at the end of the policy term and you were wrong in your projection, you could be penalized. However, you are not required to provide any confidential reports.
Contracts
If you use contracts with customers, your insurer will probably want to see a sample to make sure you’ve included all the necessary safeguards to protect your business from claims and lawsuits. If you offer professional or other services but don’t have a contract, you may be required to draft one before receiving an estimate.
Claims History
You will also need copies of your “loss runs,”. Which are the insurance term for the report that details all insurance claims made on behalf of your company. A three to five year claims history across all of your policies is typically required by insurance companies. If you are unable to obtain these reports from your current insurance agent, the quoting process will be significantly slowed down. Your insurance agent will be able to assist you in writing a letter to request these reports.
Any Current Policies
Although it’s not required for a quote, having copies of your current policies on hand can help the insurance agent review your coverage and identify any potential gaps. The truth is that a lot can change in a year. It is possible that a policy review will serve as a prompt to either add or remove pieces of machinery, vehicles, etc.
2. Research
When was the last time you purchased something that needed to be assembled, but you chose to ignore the instructions? How did you determine that it was constructed properly? Unless you follow the steps, it is difficult to know for sure what the outcome will be. Obtaining the appropriate insurance for a small business is no different.
Reading the instructions isn’t nearly as interesting as learning about the different types of business insurance. Even though you might want to skip this step, spending as little as twenty to thirty minutes doing research could end up saving you a lot of time and money. You don’t need to become an expert. But having a fundamental understanding of the coverage options will help you make better decisions. Regardless of how long you’ve been in business, whether or not you seek the assistance of a professional. The first part of your research should be knowing the types of insurance available.
Types Of Business Insurance
General Liability – For a smaller company, this can be a lifesaver in the event that you are sued for damages or injuries caused by a third party.
Group Insurance – Group insurance is a great way for small businesses to provide health care coverage and other medical benefits to your staff.
Workers’ Compensation – In the event of a workplace injury or illness, these policies will pay for the employee’s medical care, ensuring their safety.
Property Insurance – Coverage is good in the event that a company’s inventory or technological equipment are damaged or destroyed as a result of a natural disaster.
Commercial Auto – This covers any vehicles that your company uses for work.
Business Owner’s Policy – Small business insurance is a type of business insurance package that protects businesses from a variety of risks, including those associated with property and liability.
Every business has its own set of needs. Once you know the basics of business insurance, you should look into which ones are best for your business. For instance, an accountant who works from home might have a basic general liability policy. But an accountant who owns a building that customers come to would be better off with a business owners policy, or BOP, that covers more. Even though both accountants do the same job. There are differences in how they do it that affect their insurance needs.
3. Contact a Business Insurance Agent
You can work with an EZ agent who specializes in small business insurance to get the coverages you need. To work with our experts, you can get a free quote online. Talking to your insurance agent about your business can help you figure out what you need and how much coverage you need. They can help you figure out what kinds of coverage you can get and how much it will cost.
How To Determine The Business Insurance You Need
What kind of insurance is best for your business depends on your specific needs and the laws in your state and industry. You’ll need to carefully look at your business to figure out what kinds of insurance you need. Talking to an insurance expert is always a good idea if you want to find the right mix of coverage to make sure your business is legal and financially safe.
1. Analyze your legal responsibilities and business assets.
First, you should take a close look at your business and assets to figure out what you want to insure. What kinds of insurance are required by law, and where do your other responsibilities lie? For example, a machine shop might want to make sure its workers are covered in case they get hurt, while a jeweler might want to make sure they aren’t robbed. As required by law, the owners of a large distribution company would insure both their goods and their employees. Each state has its own rules, so make sure to talk to your agent to figure out what you need to insure.
2. Analyze Your Risk
Look at your new risks and responsibilities. This will help you figure out what kind of insurance will protect your business the best. For example, if your business is on the bottom floor of an office building in a flood-prone area. You’ll probably want comprehensive flood insurance. A business in a dangerous industry will probably want insurance to cover the risk of its employees getting hurt.
3. Decide How Comprehensive Your Coverage Needs To Be
Depending on what you’re insuring, you may need basic insurance or insurance that covers everything that could go wrong. Think about how much the loss would cost and how likely it is to happen. This will make it less likely that you will pay too much for coverage you don’t need or not get enough coverage for your safety.
How EZ Can Help
EZ can help whether you need group health insurance for your employees or commercial insurance to protect your business. Our agents work with the best insurance companies in the country to make sure you and your employees get the best insurance. In fact, we can find you the best coverage for your budget and save you hundreds of dollars a year. Call us at 877-670-3531 for help with group health insurance or 877-670-3538 for help with commercial insurance.
If you have 30 or more full-time employees, the IRS considers you an “applicable large employer”. And are required to follow specific requirements when it comes to offering health insurance to your employees. One of these requirements is that you provide your employees with health coverage that meets what is known as the minimum value, or MV.
To make sure that you’re following the IRS’ rules and that your health insurance plan meets the guidelines for minimum value, it’s important to understand exactly what minimum value is, so you don’t face any financial penalties.
What Is Minimum Value?
Minimum value is a standard set for health insurance plans offered by employers to ensure that the plans provide at least the minimum coverage mandated by employer responsibility provisions.
Specifically, the health insurance that you offer your employees is considered minimum value if the plan pays at least 60% of the total allowed cost of benefits that are expected to be incurred. And the plan benefits include substantial coverage of doctor services and inpatient hospital services.
How To Determine if You’re an Applicable Large Employer (ALE)?
You are an ALE if you average at least 50 full-time employees, including full-time equivalent employees, during the prior year. A full-time employee for any calendar month is one who has at least 30 hours of service per week. To determine if you are an ALE, you must:
Determine how many full-time employees you had each month of the prior year. This provision defines a full-time employee for any calendar month as one who has, on average, at least 30 hours of service per week during the month.
Determine how many full-time equivalent employees you had each month of the prior year. To do this, combine the number of hours of service of all non-full-time employees for the month (but no more than 120 hours per employee). And divide that total by 120.
For each calendar month, add your full-time and full-time equivalent employees for a monthly total. Add the monthly totals. Divide the sum of the monthly totals by 12. If the result is 50 or more employees, you are an applicable large employer.
The IRS will penalize you if the plan that you offer your employees doesn’t meet the minimum value standard. If you have more than 30 full-time employees, you must meet the minimum value standards for at least 95% of your employees. Otherwise, the annual per-employee penalty for providing unaffordable coverage for 2023 is $4,320.
When it comes to offering healthcare plans to your employees, the more you know, the less you spend. Not only can EZ agents help you navigate the complicated system and avoid penalties, but we can also find you the best group plan for your business! Comparing plans with one of our agents is the best way to make sure that you know what all of your options are. EZ’s agents are trained, licensed, and highly experienced with all the different types of group plans. And they know what will work best for you and your employees.
Our agent will navigate through all available plans to find the most coverage for your employees. While keeping more money in your pocket. We get how time-consuming and frustrating it can be to comb through all the different group plans in your area. We will provide you with a personal agent who will assess everyone’s needs and compare all of the plans available in minutes. All of our services are free, and there are no obligations. To get free quotes, enter your zip code in the bar above, or to speak to an agent, call 888-998-2027.
Covid has certainly changed a lot and the employee benefits space is not immune. We created a free employee benefits report resource to help you understand all of the changes in this space.
Our 2023 Small Business Employee Benefits Benchmarking Report includes topics such as:
How plan offerings have changed post-Covid
The different benefits now offered by companies
The role geography has on how employees value various benefits
Want to learn more? Download the full report below:
After you’ve read the report, and decided you’re ready to find the best plan for your business, the next step is to get your free, personalized quotes.
Need Help?
Trying to figure out which group plan is best for you and your employees is a lot of work. There are so many insurance companies, and each has multiple plans to compare. Because EZ.Insure works with a variety of insurance companies around the country, we have easy access to all available plans. We can compare plans in minutes for free, answer any questions about business requirements for group insurance, and guide you through the process. We work hard to save you as much money as possible, because we know that group insurance can be costly.
To get free instant quotes, simply enter your zip code in the bar above, or to speak directly with an agent, call 888-998-2027.
Attracting and retaining employees is important to building your business, and one of the ways to do this is by offering an appealing benefits package. Since good health insurance is one of the most sought-after benefits for employees, you have to pay extra attention to what you’re offering. It might not be enough to offer one choice, so you might want to look into different types of plans you can offer, especially plans that offer a lot of options, like high deductible health plans (HDHP) and preferred provider organization plans (PPOs).
What Is a HDHP?
A high deductible health plan (HDHP) is like any other insurance plan with one key difference. If you guessed by its name that these plans have high deductibles, you are correct! HDHPs do have a higher deductible compared to most insurance plans, but in return, your employees will get a lower monthly premium.
Another major advantage of HDHPs is that you can offer the option of a health savings account (HSA) alongside them. An HSA is a tax-advantaged savings account that allows your employees to put aside money to help pay their out-of-pocket costs for health services. Employees can only contribute to an HSA if they have a HDHP, so if you think an HSA will be an attractive option for your employees, consider offering a HDHP plan so you can also add an HSA to their benefits.
To explain HSAs to your employees, and make them aware of how beneficial they can be, break them down with quick facts like:
You can use your HSA funds tax-free!
You can’t lose your HSA. Even if you change jobs or insurance plans, your HSA follows you.
HSA funds don’t expire! They roll over into the next year, so you don’t have to worry about losing money if you don’t use it before the year ends.
HSAs provide tax advantages because the contributions are pre-tax. Additionally, they accrue tax-free interest, and you can use the funds for qualified expenses tax-free.
Not only that, but similar to a 401k plan, you can match a percentage of your employees’ contributions to HSAs, which will make the option of an HSA-qualified HDHP even more attractive.
What Is a PPO?
A preferred provider organization plan (PPO) is health insurance that offers the best access to a network of healthcare providers like doctors, hospitals, labs, and specialists.
PPOs generally offer the largest network for your employees and will have plenty of options when it comes to providers. PPOs also offer coverage for services outside of their network, your employee would just have to pay more of the bill than they would with an in-network provider. This freedom to choose their provider is a huge perk to most employees.
Additionally, PPOs can offer uniform healthcare coverage. If you have employees in more than one state, this gives you the ability to offer nationwide network access. This means all of your employees will receive the same coverage no matter where they live.
Can I Offer Both Types of Plans?
You can absolutely offer both an HDHP and a PPO. While PPOs generally have lower deductibles and higher premiums, some PPOs actually qualify as HDHPs. That means you’ll also be able to offer the option of an HSA with a PPO plan that is considered a HDHP. For 2022, as long as the PPO plan’s deductible exceeds $1,400 for individuals and $2,800 for families, it’s classified as an HDHP, and can be considered HSA-eligible.
Adding healthcare options like plans that include HSAs, or PPOs that allow them to choose from a wide range of healthcare providers to your employee benefits package can keep your employees happy, and boost employee retention. If you need help adding or changing your employee’s healthcare plan, EZ.Insure has you covered. Our expert agents can answer any questions and help you find plans that fit your employees best. We offer free instant quotes with no obligation. All you need to do is enter your zip code into the bar above or call us today at888-350-1890.
It’s here! Open Enrollment for your group health insurance plan has come around again, running from November 1 – December 15. Now is the time when you can choose new benefits, or review and change existing health insurance benefits for your employees, and we get it: this time of year can be hectic and stressful, with all of the questions that employees (and you!) might have. Not only that, but you’ve got the weight on your shoulders of knowing that this is your one chance to get this done until next year! But don’t worry, we’ve got you – first, check out our tips below for a smooth Open Enrollment, and then speak to an EZ agent who can help you find the perfect plan for you and your employees.
To qualify for group health insurance, your business must have at least 1 full time employee other than yourself or your spouse.
Does Your Small Business Qualify for Group Health Insurance?
Let’s start with the basics. If you’re new to offering group health insurance to your employees, you might be wondering how you qualify to offer it. Well, it’s actually pretty simple, and more likely than not, your business will qualify! You need to:
Have at least one full-time employee who is not the business owner, or the spouse of the business owner
Be legally registered as a business entity in your state (regulation for this varies from state to state)
Contribute at least 50% to your employees’ monthly premiums
Why Take Advantage of Open Enrollment?
Ok, so your business qualifies to offer group health insurance, but should you? And if you’ve already got a plan in place, why review it during Open Enrollment? Well, there are a few very good reasons to do both:
You and your employees can save money – Enrolling in a group health insurance plan is often cheaper than enrolling in an individual plan. Not only that, but the more employees you can get to sign up, the cheaper the plan could be.
Changes in life circumstances mean changes in insurance needs – If you do already offer group health, you definitely need to take advantage of Open Enrollment and use this time to reassess your and your employees’ needs. Has anything major changed, like births, deaths, or marriages? If so, you might be able to find a plan that offers better or more tailored coverage for a better price.
Group health can mean tax advantages – Who doesn’t love to save on their taxes? Take this time to look into ways you could be saving, like checking if you qualify for the small business health care tax credit, or by choosing to offer tax-advantaged healthcare options, like HSAs, FSAs, or HRAs.
What Should You Be Thinking About When Choosing a Plan?
Another important basic step in the process: knowing what you should be thinking about when exploring your options. Here are 4 essential factors that should go into your decision-making process:
Costs associated with the plan – You’ll want to consider how much employees want to pay in premiums, while also remembering that you have to contribute at least 50% of the amount each month. Also keep in mind things like deductibles, copays, and coinsurance that can all add up, depending on how often your employees access medical services.
The metal tiers of available plans – Familiarize yourself with the so-called metal tiers of plans: Platinum, Gold, Silver, and Bronze. These terms have nothing to do with quality of care, rather they indicate what percentage of costs a plan will pay for covered benefits. For example, popular Silver plans will usually cover around 70% of costs, with the insured paying the remaining 30%.
The type of plan you want – In addition to choosing a metal tier, you’ll also have to consider what type of plan you want to offer to your employees. For example, you can choose from HMO, PPO, POS, and EPO plans; each of these types of plan will offer different price points, since some are more flexible about things like network coverage.
Insurance companies – Check out which insurance companies offer plans in your area, and what their networks look like; you want to be sure that they offer affordable care in locations that are convenient for your employees.
What Should Employees Consider?
So you know what you need to be thinking about, but are you ready to answer your employees’ questions, or take on their concerns? You can help guide them in choosing or changing their plan by telling them to take the following factors into consideration:
The price of the plan – Let your employees know exactly how much the plan will cost them per paycheck.
Their dependents – Your employees should think about who they will need to have covered by their plan, especially if they plan on adding on family members in the coming year, or if they have added any new household members since last year. You’ll also need to make clear your policy on contributing to dependent coverage.
Any changes in coverage – Make sure your employees know what is covered under the plan, especially if there is anything new being added, like dental or vision coverage.
Any added benefits – In addition, if your plan is going to have any new benefits, like telemedicine or wellness programs, let your employees know.
Top Tips for Employers
Group health insurance can seem a bit overwhelming, especially since studies show that 35% of employees have little to no understanding of their healthcare coverage! Not only that, but 22% of employees are confused during open enrollment, 20% are anxious, and 21% are stressed, so it can be tough to know how to approach this subject. But there are some ways to make the process go a little more smoothly. For example, you can:
Go digital – You don’t have to print out reams of paper, or have endless meetings with employees about benefits (which might be tough with all of the work-from-home going on right now)! Save paper, toner, and your and your employees’ sanity by offering everything in PDF form, and by considering holding a virtual benefits fair, which employees will be able to access when it works for them from the comfort of their home.
Keep it simple – When emailing employees about their benefits, be as concise as possible, with price per paycheck and benefits clearly laid out, using language that is easy to understand. You can also include any FAQ sheets you get from your insurer or agent, as well as a glossary of terms and acronyms.
Send out a survey – While you do have to be careful about privacy when it comes to employees’ health, there is no reason why you can’t send out an anonymous survey to find out what your employees are most interested in when it comes to their insurance plan, so you can either make a choice to change the plan you’re offering, or can recommend the right plan to them.
Be creative with your communication – Email is great, but you have tons of options when it comes to follow-up communication and reminders about enrollment, including:
Text messages
Posters
A dedicated intranet webpage
Videos on screens in common spaces
Notices on paychecks (both hard checks and online)
A chat channel, through a platform like Slack
A Twitter chat, complete with hashtags that other employees can search
Yes, it’s Open Enrollment time again, what some might consider the most confusing time of the year. But you know? You got this, and we’ve got your back if you need help choosing, reviewing, or changing your employees’ healthcare plan. Come to EZ.Insure for a dedicated agent who can answer all of your questions, every step of the way, as well as find you fast, accurate quotes and sign you up for a great plan – all for free! No hassle, no obligation. To get started with us today, simply enter your zip code in the bar above or to speak to an agent, call 888-350-1890.
Individual Coverage Health Reimbursement Arrangements, or ICHRAs, have been available since January 2020, and have been growing in popularity over the past year. This is because they allow employers to save money while offering employees a way to get healthcare benefits. They are a great alternative to group health insurance, especially since the rules surrounding them are less restrictive than those surrounding traditional healthcare plans, or even those of other HRAs. For example, there are no contribution maximums and no company size restrictions on ICHRAs. Before deciding if an ICHRA is right for you, you should first weigh the pros and cons.
ICHRA Pros
All reimbursements for each employee are tax-free.
ICHRAs are a type of health reimbursement arrangement, a health benefit that differs from an HSA in that it is an arrangement, as opposed to an account. Employees don’t put money aside for their healthcare expenses; rather, you reimburse them for their medical expenses. You provide a set monthly allowance for employees’ premiums and medical expenses. ICHRAs have a lot of advantages for both you and your employees, including:
You can choose how much you want to contribute every month, and there is no minimum or maximum. Once set, you will give that amount to employees monthly; they cannot exceed that amount, which will help you budget accordingly.
Reimbursements are tax-free.
You can offer different monthly allowances to different groups of employees based on the type of job they do, how many hours they work, and even family status.
Employees use the money you offer them to find an individual healthcare plan that suits their needs. This is empowering to them, and will allow you to focus on your business instead of trying to find a group health insurance plan that fits all of your employees’ needs.
Employees need to have an individual insurance policy to participate in an ICHRA, so if you enroll and start reimbursing employees mid-year, employees will become eligible for a Special Enrollment Period to choose a major medical health insurance plan. This means that they will not have to wait until the Open Enrollment Period, November 1- December 15, to buy a health insurance plan.
ICHRA Cons
There are many positives to offering an ICHRA, but sometimes with the good comes some bad. The disadvantages of ICHRAs include:
Employees who are on their spouse’s health insurance plan cannot participate.
This type of arrangement prevents employees from being eligible for advanced premium tax credits on ACA Marketplace plans. So if an employee decides not to take part in an ICHRA that is considered “affordable,” they will not be able to receive tax credits with an ACA plan.
Employees who are on their spouse’s health insurance plan cannot participate. The only way to participate is if they purchase their own individual health insurance and get reimbursed for it through the HRA.
Need Help?
For many employers, ICHRA pros outweigh the cons and can seem like a no brainer, which is why they are growing in popularity. You get to help your employees purchase health insurance plans that meet their specific needs, and you also get to save money in the process. Reimbursements are tax-free for both employees and employers, meaning that they are tax-deductible for employers, and income tax-free for employees, which will save you on employer payroll taxes. It’s a win-win situation.
If you are interested in an ICHRA, or want to explore your options for a group health insurance plan, reach out to an EZ agent in your area. Our agents are highly trained and work with the top-rated insurance companies in the country. We can assess your needs and compare plans instantly, for free. To get started simply enter your zip code in the bar above, or to speak directly with a local licensed agent, call 888-998-2027.
