Compare Business Healthcover
Business health insurance
What UK business health insurance is, how group PMI works, what it covers, who can buy it, and how to compare. Free introduction to FCA-regulated brokers. We are not an insurer.
Written by Compare Business Healthcover. Last reviewed September 2026.
Business health insurance is group private medical insurance (PMI) arranged by an employer for employees — and sometimes dependants. It is also called company, corporate or SME health insurance. It is not life insurance, not income protection, and not a consumer family plan bought in a company name.
What is business health insurance?
It is a group policy in the employer’s name. Eligible staff are members of one scheme rather than each buying their own individual PMI. Compare Business Healthcover introduces UK employers to FCA-regulated broker partners who obtain quotes. We do not underwrite policies or give personalised financial advice.
How does business health insurance work?
The employer chooses a benefit design (for example inpatient-only or comprehensive outpatient), an excess, and a hospital list. A broker places the scheme with an insurer willing to quote for that workforce. Staff are enrolled; joiners and leavers are updated during the year. Claims are made against the group policy under the insurer’s wording, not against this website.
What does business health insurance cover?
Core cover is usually inpatient and day-patient treatment in private facilities, with consultant fees and hospital charges within the policy limits. Many SMEs add outpatient consultations, diagnostics such as MRI or CT, therapies and mental health. Cancer pathways and chronic-condition rules differ by insurer — always read the exclusions on the quote.
What isn’t normally covered?
It does not pay sick pay. It does not replace NHS emergency care. Pre-existing conditions may be excluded or subject to a waiting period, depending on underwriting. Cosmetic treatment, routine dental and optical, and some chronic conditions are often excluded or sold as extras. The schedule on your quote is the authority, not a generic web list.
Who can get business health insurance?
UK limited companies, LLPs and similar employers with a genuine workforce. A director plus staff, or two working directors, is a normal SME enquiry. Sole traders with no employees usually need individual PMI instead. Occupations, company structure and insurer minima still decide eligibility — a quote confirms it.
How many employees do you need?
Many UK SME group schemes start at two employees. That is common, not universal. Five used to be a folklore minimum and is no longer a reliable rule. Unpaid spouses who are not employed usually cannot be “employee number two”. See our two-employee guide for who counts.
How much does business health insurance cost?
There is no universal price. A young two-person professional firm will not pay the same as a mixed-age team of forty on comprehensive outpatient cover. Age, headcount, cover level, excess, hospital list, underwriting and claims history (at renewal) all move the premium. Treat “from £X a week” adverts as marketing, not a quote. Our cost guide explains the drivers; a broker prices your actual people.
Benefits for employers and employees
Employers use group PMI to support recruitment, retention and absence: private diagnostics can shorten waits for some elective care. Employees get a defined pathway to private treatment within the wording, often including dependants if the scheme allows. It is a benefit, not a guarantee of faster care for every condition.
- One scheme instead of staff buying individual policies ad hoc
- Membership can usually add joiners and remove leavers in-year
- Renewal is the point to re-broke the market, not only to accept the incumbent
Is business health insurance tax deductible?
For many UK limited companies, employer-paid group PMI is treated as a staff cost for corporation tax where it is wholly and exclusively for the trade. Employees — including employee-directors — usually have a taxable benefit in kind reported on form P11D. National Insurance and salary-sacrifice rules can also apply. This is a general outline, not tax advice. Confirm with your accountant and read our tax page.
Business health insurance vs individual private health insurance
Group cover is in the employer’s name for a defined membership. Individual PMI is in a person’s name. Directors sometimes mix both — for example group cover for staff and a separate personal policy. A one-person company with no employees is usually an individual product, not a “group of one”. Mixing wrappers without advice is how firms buy the wrong thing.
Types of underwriting
Moratorium typically excludes conditions from a recent period until you are symptom-free for a set time. Full medical underwriting uses declarations up front and may exclude or load specific conditions. Larger groups may get medical history disregarded. The right method depends on workforce health and the insurer, not on which phrase sounds friendlier. Employees on SME schemes do not usually attend a GP exam.
How to compare providers
Fix the benefit design first (inpatient-only versus comprehensive outpatient, same excess, same hospital list). Then compare cancer cover, mental health, outpatient caps, claims service and regional hospital access — not headline premium alone. A cheap scheme with a restricted list in your area is not cheaper in practice. Panels change; we do not publish a fake “best insurer” ranking.
How Compare Business Healthcover works
You submit company size, location and what you want covered. We introduce you to FCA-regulated broker partners. They compare group schemes, explain exclusions and underwriting, and arrange any policy you choose. Compare Business Healthcover is a trading name of MASON & HALL DIGITAL LTD. We are an introducer, not an insurer, and we are not FCA authorised. If a policy is taken, the broker is typically paid by insurer commission; that does not usually increase the premium versus going direct. There is no obligation to buy.
Frequently asked questions
What is business health insurance?
Group private medical insurance arranged by an employer for staff (and sometimes dependants). It is company-paid employee medical cover, not a consumer family policy and not life insurance.
How much does it cost?
It depends on ages, headcount, cover level, excess, hospital list and underwriting. There is no honest single figure. Compare like-for-like quotes rather than advertised “from” prices.
Is business health insurance tax deductible?
Employer-paid premiums are often an allowable business expense; employees usually have a P11D benefit in kind. Confirm with an accountant. See our tax guide for the outline, not a personal calculation.
Is business health insurance a Benefit in Kind?
Usually yes, when provided by reason of employment. The taxable amount relates to the cost of the benefit HMRC requires you to report. Payroll should be set up before the first year ends.
How many employees do you need?
Many SME schemes start at two lives. Insurer rules vary. A sole trader with no staff is typically quoted on individual PMI instead.
Do employees need a medical exam?
Usually not on SME group schemes. Underwriting is typically moratorium or full medical underwriting at group level. Individuals may complete a declaration.
Can we switch insurer at renewal?
Yes, subject to underwriting and avoiding cover gaps. Do not cancel an existing policy until the new one is on risk. See the renewals guide.
Related: SME cost guide · What cover includes · From 2 employees · Small company schemes · Tax treatment · About us · How providers differ