There are more than two thousand business benefits providers in the United States, and choosing the right one can be a daunting task for a small business owner. While the task can be confusing, it is also one of the most important decisions you make for yourself and your employees. While keeping costs down is important, you must also find a benefits provider that doesn't compromise on quality. While you will need to consider many factors, the following are six factors you must consider before you make a decision.Start by asking each provider how efficient they are when it comes to paying claims- then find out what other businesses have to say. Paying claims out in a timely fashion is one of the most important factors for businesses and their employees, because fast payouts help ensure that everyone gets what they need. Your employees will be happier, your fees will be lower, and more providers will accept your insurance plan.
Next, find out what fees are being charged by your broker. Many companies use third-party brokers to sell their insurance plans, and most businesses don't think about asking whether these fees can be reduced or eliminated. If you are working with a broker, you may want to consider going directly to the company that he or she represents to see if you can do better in terms of pricing and services.
Talk to other business owners and find out who the major insurance carriers in your area are. Then, if your broker isn't offering you a policy with those carriers, find out why. Many carriers pay higher premiums to brokers who sell their policies to small businesses, and many less reputable brokers will push these carriers even if it is not the best choice for you. Carriers who are major players in your area will be those that have great customer service, low fees, and high payouts.
Once you have narrowed down the list of providers you are considering, check into their satisfaction rating. Start by contacting your local Better Business Bureau. You will also want to check with your state's insurance board to see if there are many complaints against a particular company. Finally, talk to other business owners to find out what their experiences with different companies has been. Often, this is the best way to find out whether a particular company is right for your business and employees.
Find out what each company will do for your employees. Even when coverage and rates are similar, some companies are much stronger due to their level of customer service. For example, find out if there is a claims committee that reviews denied claims. Ask about a toll-free number that is staffed all the time to handle questions about coverage. Find out what the policy is for employees who miss a payment deduction due to being on leave or out sick- carriers should have ways for the employee to pay the missed amount online or defer payment. As an employer, the last thing you want is to have employees complaining about how long claims take, how hard the carrier is to work with, and how hard it is to talk to the company.
Finally, when you ask about cost, the company should offer you a range of options. Due to recent legislation, you may be able to purchase insurance with a group of other similar businesses to create a larger group- which can mean lower payments. Premiums should be affordable to employees, roughly in the same range as their hourly wage. You should also find out if the company will offer you reductions in premiums if you are able to purchase several different types of policies from a single business- grouping your business insurance with your health care insurance and life insurance for example.
While finding the best benefits providers can require a lot of homework, you and your employees will enjoy the benefits of your work for years to come. Taking the time to consider the factors that make a benefit carrier a good fit with your business can save you money and make things run a little more smoothly in the long run.
