Group income protection insurance

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    Chris Godfrey

    Page written by Chris Godfrey. Last reviewed on May 26, 2024. Next review due April 6, 2025.

    Few employees could afford to be off work for an extended period due to injury or illness. The financial impact could be devastating. In the same vein, few businesses can afford to lose their important workers for many weeks or months. It hurts company morale, impacts productivity and drives up costs. This is why any business that employs other people needs group income protection insurance. Use it to give your key workers a financial cushion and support their recovery if they are injured or fall sick. 

    Read on to learn more about this essential business protection.

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      What is group income protection insurance?

      Group income protection insurance is a business insurance that enables employers to pay employees a percentage of their continued income if they are off work for a long time due to illness or injury. This type of policy can also cover employers against the cost of temporarily replacing the absent employee and will typically include rehabilitation services to help employees return to work as soon as possible.

      What are the benefits of group income protection?

      Group income protection cover can benefit both businesses and their employees:

      Continued income during sickness or injury

      Often, when an employee is off work for a long time through sickness or injury, they must rely on their statutory sick pay or state benefits to cover their living expenses. This may not be enough or last long enough to pay all the bills, leaving employees vulnerable to mortgage arrears, accruing debts, even bankruptcy. Instead, group income protection will pay the employee a portion of their salary or wages until they can return to work.

      Key benefit to the employee:

      • Retain most of their salary or wages or salary even if they are off work for an extended period
      • Not taxed as a P11D benefit in kind

      Key benefits to the business:

      • Tax deductible expense
      • Improves employer value proposition (EVP) making your company more attractive to new workers and supporting employee retention

      Early intervention and rehabilitation

      Group income protection policies will typically give employees access to a range of health and well-being resources, helping them to recognise the symptoms of looming medical issues early in their cycle. This provides the employee with the necessary knowledge to secure intervention treatment before the medical issue develops into a full-blown crisis. 

      The insurance will also usually provide employees with access to rehabilitation services after they fall ill or suffer an injury. This can help to speed the recovery process, returning them to full health sooner. 

      Key benefit to the employee: 

      • Treat a medical problem before it becomes a serious condition
      • Get back on their feet sooner if they become ill or are injured
      • Covers both physical and mental health

      Key benefits to the business:

      • Prevents unnecessary absences 
      • Gets your key employees back to work and helping build your business sooner

      Case management support from the experts

      Most group income protection insurers will assign a dedicated case manager to work closely with your employees during the claims process, supporting them with advice, information and regular claims updates.

      Key benefits to the employee: 

      • Reduces risk of errors and omissions
      • Eases employee worry during a difficult time

      Key benefit to the business:

      • Allows you to concentrate on your business knowing your valuable employees are well cared for

      Prioritise wellbeing

      Group income protection insurance can deliver a range of wellbeing services and workplace wellbeing solutions to help businesses create a healthier, happier workforce.

      Key benefits to the employee: 

      • Reliable information resources allow employees to make better lifestyle decisions
      • Helps to maintain peak employee health 

      Key benefits to the business:

      • Fewer absences
      • Fewer compensation claims
      • Reduced employee turnover
      • Better productivity

      How much does group income protection cost?

      Group Income Protection typically costs between 0.5% -1.5% of payroll, but your exact premium cost will be determined by your business type, your location, the number of employees to be covered and the types of work they do.

      Is it essential for a business?

      Yes, it is. For four good reasons:

      • It can help you to maintain a stronger, healthier workforce that will enhance your productivity.
      • Ensures your important workers are protected financially, and that they have access to well-being and rehabilitation resources if injury or illness strikes. (This is a key step in your statutory provision of duty of care). 
      • It helps sick or injured workers to return to work sooner. This is good for them and for you.
      • Employees who can see their employer supports them are less likely to leave for pastures new. This benefits your organisation with lower employee turnover, reduced recruitment costs and saves you from losing valuable worker experience.

      How to arrange coverage

      Just as no two businesses are the same, so no two group income protection policies are the same. Because every business will need a policy that’s customised to fit their operation it makes sense to compare different offerings from different insurers before making any purchase. Start the process here.

      How Swoop can help

      Keeping your workforce healthy and happy is key to business success. Don’t let long-term illnesses or injuries cause hardship to your employees or impact your operation’s productivity. Register with Swoop today to compare top-quality group income protection policies from a range of insurers and to discuss all your business insurance needs. 

      Written by

      Chris Godfrey

      Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance.

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