Clema Risk Solutions Clema Risk Solutions
Get a Quote
  • Business Insurance
    • Business Interruption Insurance
    • Business Owner’s Policy
    • Cargo Insurance
    • Commercial General Liability Insurance
    • Credit Insurance
    • Cyber Insurance
    • Directors and Officers Liability Insurance
    • Employee Compensation Insurance
    • Medical Malpractice Insurance
    • Product Liability Insurance
    • Professional Indemnity Insurance
    • Property Damage
    • Public Liability Insurance
  • Employee Benefits
    • Accidental Death and Dismemberment Insurance
    • Critical Illness Insurance
    • International Health Insurance
    • Term Life Insurance
    • Travel Insurance
  • Industry Solutions
    • Asset Management and Funds Insurance
    • Online Seller’s Insurance
    • Schools and Educational Institutions’ Insurance
    • Veterinary Clinic Insurance
  • About Us
  • Resources
  • Contact Us
  • Cargo Insurance
Clema Risk Solutions Clema Risk Solutions
  • Business Insurance
    • Business Interruption Insurance
    • Business Owner’s Policy
    • Cargo Insurance
    • Commercial General Liability Insurance
    • Cyber Insurance
    • Directors and Officers Liability Insurance
    • Employee’s Compensation Insurance
    • Medical Malpractice Insurance
    • Product Liability Insurance
    • Professional Indemnity Insurance
    • Property Damage
    • Public Liability Insurance
  • Employee Benefits
    • Accidental Death and Dismemberment Insurance
    • Critical Illness Insurance
    • International Health Insurance
    • Term Life Insurance
    • Travel Insurance
  • Industry Solutions
    • Asset Management and Funds Insurance
    • Online Seller’s Insurance
    • Schools and Educational Institutions’ Insurance
    • Veterinary Clinic Insurance
  • About Us
  • Resources
  • Contact Us
  • Get a quote
Jan 17

5 corporate health insurance mistakes to avoid

Businesses outsource their staff medical expenses to insurance companies via corporate health insurance. It is the best way to safeguard employees’ interests in the event of illness or bodily injury. However, there are certain corporate health insurance mistakes to avoid.

Selecting the right corporate insurance requires you to analyze deeply the medical insurance needs of employees. You will also need to review a large amount of information. Here are some mistakes to avoid while selecting a corporate health insurance plan.

1/ Selecting the cheapest option

Corporate health insurance is expensive. So, it’s tempting to choose cheaper plans to save money. However, you need to remember that selecting a cheaper option is not necessarily the best way to save money. This could be a corporate health insurance mistake that could ultimately prove expensive.

The fact is, there are other considerations apart from cost. These could include the level of service the insurer offers, the speed at which they reimburse claims, the network the insurer has in place, etc. You may save money on the premium if you select a cheap plan. But your insurance will start costing more money when the insurer refuses claims, doesn’t answer your questions, or drags out the claims process.

Some of the cheaper policies may not include wellness benefits or certain health checks that employees often request. This may generate some extra costs in the long run.

2/ Selecting a local plan over an international one

Local and international plans serve the same purpose. However, the level of coverage varies greatly. Depending on whether you are based in China, Singapore or Hong Kong, the level of coverage a local plan provides could vary.

The main difference is that international plans tend to provide greater coverage and higher limits. This means that they will better cover the cost of high-end medical facilities in the country you reside in.

The second common corporate health insurance mistake is to select a local plan while your employees travel abroad. In case your employee falls sick abroad, a local plan will not cover his medical claims, and he will have to pay extra fees. In such cases, the best solution is to group the employees that do not travel and cover them with local insurance. The ones who travel may be covered by international insurance. Or, you could buy a comprehensive annual travel insurance.

3/ Not including your employees in the selection process

Another corporate health insurance mistake is not including your employees in the selection process of your group plan. Not including them in the selection process will result in the coverage not matching their requirements. If your employees don’t utilize the coverage you provide, there is a good chance that you will not see a positive return on your investment.

Including your employees in the selection of their group plan will allow you to save some time in explaining the policy to them as well.

4/ Assuming that preexisting medical conditions are covered

In the context of healthcare, a preexisting condition is a medical condition that began before a person’s health benefits came into effect.

Usually, when we talk about a medical group plan, we talk about Medical History Disregard (MHD). This means that their medical insurance will cover all medical conditions preexisting included. But this option is only available for group plans that have more than 10 or 20 employees.

It is important to review, in detail, all terms and conditions of your group plan. If you wish to cover your employees for their preexisting conditions, be sure to negotiate this condition with your insurer prior to finalizing the group plan.

5/ Not understanding the eligibility requirement

It is important to define who, in the company, will benefit from the insurance prior to setting up a group plan.

Most group plans require that all employees at a certain level in the company must join the group plan. For instance, the insurer will ask that all mid-level employees be enrolled in one plan.

It is advisable to define different levels of coverage according to the position of employees. For example, senior managers receive international coverage while entry-level employees get local coverage. In case one of your employees is promoted, he can then move into the group plan for his new category.

To avoid such corporate health insurance mistakes, we recommend that you work with professionals. They will be in a position to advise your HR director properly.

Contact us at Clema Risk Solutions for more information on group plans.

You can also visit our website to find out about the insurance services we offer for SMEs, or to get a quote.

  • Facebook
  • Twitter
  • Tumblr
  • Pinterest
  • Google+
  • LinkedIn
  • E-Mail

Comments are closed.

Recent posts

  • The 3 levels of liability insurance for technology companies
  • Can I insure my cryptocurrencies?
  • How do I calculate the value of my contents and stocks for my business insurance in Hong Kong?
  • Does your employees’ compensation insurance covers your company when your employees are working from home?
  • Do Startups need business insurance?

Categories

  • Business Insurance (42)
  • Business insurance package (3)
  • Business Interruption (3)
  • Business Owner's Policy (2)
  • Credit insurance (1)
  • Cyber Insurance (5)
  • Directors and Officers Liability Insurance (3)
  • Employee Benefits (6)
  • Employer's Liability (4)
  • Health Insurance (2)
  • Marine Cargo Insurance (1)
  • Online Sellers Insurance (2)
  • Product Liability (4)
  • Professional Indemnity (6)
  • Property damage Insurance (1)
  • Public Liability (5)
  • Service Insurance (2)
  • Term Life Insurance (2)
  • Travel Insurance (1)
  • Uncategorized (1)
  • Business Insurance
  • Employee Benefits
  • About Us
  • Resources
  • Manage your Policy
  • Contact Us
  • Privacy Policy

Subscribe to our newsletter

Offices

Singapore
883 North Bridge road,
#0604 Softbank,
Singapore 198785
T: +65.6493.2428
hello@clema-rs.com
www.clema-rs.com

Shanghai
Room 608, No.1900 Tian Shan Road, Changning District, Shanghai,China
T: +86.21.3251.5535
hello@clema-rs.com
www.clema-rs.cn

 

Hong Kong
99 Hennessy Road
Bayfield Building, Room 2301, 23F
Wanchai HK
T: +852.5508.8017
hello.hk@clema-rs.com
www.clema-rs.com.hk

France
4 Rue des Orphelines
77160 Provins,
France
hello@clema-rs.com

Linkedin
Made by Them You & Me
Thank you

Thank you for your interest in Clema Risk Solutions. We will respond to your inquiry in the next 24hrs.

What are you looking for?

Business Insurance OR  Employee benefits

Enter your details to proceed

 

Enter your details to proceed

 

 

Enter your details to proceed

 

You are a resident in:

Singapore

You need insurance for

An Individual OR  A Group