Offering private medical insurance is one of the most visible ways a small business can support its team and stand out to candidates. The short answer on who to look at: the main UK business health insurance providers for SMEs are Bupa, AXA Health, Aviva, Vitality and WPA. The best choice depends on your budget, the cover you need, such as mental health, cancer care and digital GP, and your headcount.
PerkIQ does not sell insurance and earns no commission. Where we can, we use our provider relationships to get discounts for our users instead. This is an independent guide to help you build a shortlist before you speak to an insurer or broker.
What is business health insurance?
Business health insurance, or private medical insurance, is cover an employer pays for so staff can get private treatment for acute conditions, usually faster than on the NHS. It typically covers consultations, diagnostics, surgery and inpatient care, and increasingly mental health support and digital GP services.
Best health insurance providers for small businesses
Bupa is the largest UK provider and offers tiered small-business plans, with strong mental health cover. AXA Health offers modular SME plans where you add cover such as mental health, therapies or out-patient care. Aviva is a major insurer with straightforward SME cover including cancer care and digital GP. Vitality pairs cover with a rewards programme that incentivises healthy behaviour. WPA is a long- established not-for-profit insurer often chosen for service. The right fit depends on your priorities, so compare the shortlist on cover and price.
If you are weighing two providers, we have side-by-side comparisons of Bupa and Vitality, Bupa and AXA Health, and Vitality and AXA Health.
How much does business health insurance cost?
Premiums depend on the ages of your employees, the level of cover, any excess and your location, so there is no single price per head. Younger teams, higher excesses and more limited hospital lists keep costs down. The only reliable figure is a quote based on your actual team, ideally from more than one insurer or a broker.
What to look for
Compare in-patient and out-patient cover, cancer care, mental health support, digital GP access, the hospital list, and the excess. For an SME, also weigh how easy the insurer is to deal with and whether you want a modular plan you can adjust as you grow. The cheapest premium is rarely the best value if it strips out cover your team will actually use.
Is business health insurance a taxable benefit?
Yes. Employer-paid private medical insurance is a taxable benefit-in-kind, so the employee pays income tax on the value of the premium and the employer pays Class 1A National Insurance. Our guide to whether private health insurance is a taxable benefit explains exactly how the tax works and what it costs the employer.
Health insurance or a health cash plan?
If full private medical insurance is more than you need or can afford, a health cash plan reimburses everyday costs like dental and optical at a much lower premium. Our guide to private medical insurance versus cash plans compares the two on cost and cover.
Where PerkIQ fits
Health cover is one of the seven categories PerkIQ scores when it audits an employer's benefits. To see how your health provision compares with best practice, you can run a free benefits healthcheck in about five minutes, or compare health insurance providers in our directory.
