Four Types of Insurance to Cover Your Employees

Congratulations! You no longer need to pitch your ideas to investors, trying to get moguls to believe in your business. You’re officially out of the shark tank. You have a growing business and you also have employees that are eager to help you out. But with a growing staff, comes growing responsibility. And we’re here to help lighten the load and introduce the different types of insurance policies to cover your employees.

As a startup, it can be scary to think of all the people who work under you and how you’re going to protect them from accidents should they affect their ability to work. And what if, you don’t have an HR division like big corporations to help you put together the paperwork and find suitable cover for your employees? What options do you have?

You’re right, there is a lot to digest when it comes to insurance of any kind and business insurance is no different. But you’ve already made the right decision in seeking advice on where and how to cover your employees. So in this guide, we’ll assist you in insuring your employees and protect their families in the event of long-term illness while working for your company.

Types of Insurance Policies for Employees

It is important to note that not all of these types of insurance coverage is mandatory for your specific business. Many small businesses and startups want to offer insurance to their employees and offer it as a form of their total compensation.

Whatever the case may be for your company, you should take a keen interest in understanding them all. Some of these insurance covers form the backbone of staff benefit packages and legal protection for your business.

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Life Insurance

This kind of cover provides payment to beneficiaries after the plan holder has passed away. Basic cover is a good starting point, as all employees will receive a set level of coverage and the premiums will be paid for by the employer.

You can also offer your employees the option of dependent life insurance or optional life insurance. With optional life insurance, an employee can choose to pay more to upgrade their basic insurance cover. With dependent life insurance, employees will pay a fixed fee if one of their dependents dies.

This type of cover is a valuable benefit to any employee as it can boost their security and offer them peace of mind. This boost in financial security for your employees is also of value to you, as an employer. You’re more likely to gain long-term loyalty and higher productivity on the job.

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Group Accident Insurance

This insurance cover aims to help companies cover their employees for risks associated with life-changing events. This covers disabilities (temporary or permanent), deadly disease, or death.

The Group Accident Insurance is worth having as it is relatively inexpensive. It also cushions employees from the financial vulnerability that occurs with these unexpected personal accidents. Insurance companies such as Rand Mutual have options that cover employees in this way, regardless of their salary grade.

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Group Critical Illness

This insurance differs slightly from Group Accident Insurance. This too, can help cover employees against unexpected life events. However, with the Group Critical Insurance the lump-sum can be used in any way to help cover costs such as nurse assistance at home, mortgage payments or out-of-pocket medical costs.

Critical Illness can really shock a household if the breadwinner is unable to work. It can happen at any moment and so, this might be an insurance cover to consider for your employees where healthcare bills can grow to be very costly.

Critical insurance can also cover conditions like cancer, major organ failures, and heart attacks. Hollard Insurance offers this type of insurance with added Comprehensive Cancer Cover. This covers a range of cancers, from stage 0 to stage 4, including hereditary cancers that might occur in the future.

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Disability Insurance

Depending on the insurance company, there can be two types of Disability Insurance. Short term and Long Term Insurance. Short term insurance provides coverage for employees who can’t work for a short period of time due to an accident or illness.

Long term insurance is a little different in that after an accident, employees may not be able to return to work but will still be covered.

This type of insurance might be the one kind of insurance where employees can rest assured. Anyone can suddenly be left in a predicament where they are unable to work due to an accident or illness. When this type of insurance is offered, employees feel like the company is protecting them and their future.

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Final Thoughts on Insurance to Cover Your Employees

As we mentioned before, these types of insurances are not all necessary for your business. However, now that you’ve had a look at this list, you can think about which ones are essential insurance cover for employees’. If you are unsure, involve your employees and ask for their input. Essentially, you will make the final call but the extra brainstorming can be helpful.

This might also be a good time to analyse if your team is interested in these kinds of insurance. If not, you won’t waste time, money and resources to get them the right type of cover.

For example, a team consisting of mainly a young demographic might prefer to just get health insurance and that would be enough to keep them happy.

But should they agree to get any of these four insurance types, you can start the process. We’d suggest you find insurance companies such as Momentum, Rand Mutual or Hollard. They offer any of the above insurance coverage and with a consultant, you can discuss plans that fit your budget so that you make that final decision happily.


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