Business health insurance guide for UK SMEs

This guide explains group private medical insurance for UK employers: who it is for, how quotes are built, tax in outline, and how to choose a scheme. It is information for comparison, not personal advice. Policies are arranged by FCA-regulated firms.

Group PMI versus individual PMI

Group cover is in the employer’s name for a defined membership (employees, sometimes dependants). Individual PMI is in a person’s name. Directors sometimes mix both — for example group cover for staff and a separate personal policy. Mixing products without advice is how people buy the wrong thing.

Underwriting in one paragraph

Moratorium typically excludes conditions you had in 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.

Choosing a cover level

Inpatient-only is cheaper and covers the expensive hospital spells. Comprehensive outpatient is what most employees notice (seeing a consultant quickly). Excess (what you pay per claim or per year) trades premium against out-of-pocket cost. Hospital lists: national lists cost more than local lists; London consultants cost more.

Next documents to read on this site

If you have two or three staff, read the two-employee page. If you are budgeting, read the cost page. If you are a limited company, read the tax page with your accountant. If you are approaching renewal, read the renewals page before you accept a one-year renewal invite.

Frequently asked questions

Related: From 2 employees · Cost · Tax