Page written by Chris Godfrey. Last reviewed on April 25, 2024. Next review due October 1, 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.
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.
Group income protection cover can benefit both businesses and their employees:
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:
Key benefits to the business:
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:
Key benefits to the business:
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:
Key benefit to the business:
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:
Key benefits to the business:
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.
Yes, it is. For four good reasons:
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.
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 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 Wells Fargo Bank, Visa, Experian, Ebay, Flywire, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of US consumer and business finance.
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