Business health insurance cost

What insurers price on

An insurer's premium reflects expected claims plus expenses. The main inputs are:

• Team age profile. Older teams claim more, so the average premium rises with age.
• Location. Treatment is more expensive in central London than the rest of the UK, so postcode matters.
• Team size. Larger schemes get better per-head pricing because risk is more predictable.
• Cover level. Full PMI with mental health and cancer pays more than a basic in-patient only plan.
• Hospital list. A wider hospital list, especially central London ones, pushes price up.
• Excess. A higher excess per claim lowers the premium.
• Underwriting basis. Moratorium, full medical underwriting and medical history disregarded each change the price.
• Claims history. Once a scheme has run for a year or two, your own claims experience starts to feed into renewals.

Typical per-employee ranges by team size

These figures are illustrative, for comprehensive cover, mixed age profile, outside central London:

Real prices vary. The estimate widget on the homepage gives a more tailored figure based on your industry and cover choices.

Try the estimate widget →

Ways to reduce cost without gutting cover

• Pick a sensible excess. Moving from £100 to £250 typically saves 5 to 10 percent.
• Trim the hospital list. A "guided" or "open referral" hospital list saves materially in London.
• Use a six-week NHS option. The insurer only pays if NHS waiting times exceed six weeks. This can save 10 to 20 percent.
• Cover senior staff fully, others lightly. Tiered cover focuses the budget where it matters most.
• Add a cash plan instead of dental. A separate cash plan is often better value than adding dental to PMI.
• Review every two years. Insurer competitiveness shifts. A market review at renewal keeps pricing honest.

Tax treatment in plain English

Premiums are a tax-deductible business expense, so they reduce corporation tax. The cover counts as a benefit in kind for the employee, who pays income tax on the cash equivalent. The employer pays Class 1A National Insurance on the same figure. Full detail in our taxable benefit guide.

Cash plan as a lower cost alternative

If full PMI is out of budget, a healthcare cash plan can start from a few pounds per employee per month and still feel like a real benefit. It pays back small everyday costs, like dental, optical and physio. See our side by side health insurance vs cash plan guide.

A note on indicative figures

Every number on this page is a typical range, not a quote. Your insurer confirms the real price after a short call, taking your team profile, location and underwriting choices into account.