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7 Best Practices for Implementing Insurance for Your Workforce
November 21, 2025
Estimated Reading Time: 5m
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Offering an employee benefits plan is a smart business move for small and medium enterprises (SMEs). A quality insurance package not only enhances recruiting and retention but improves workplace productivity—while providing key protections employees might not otherwise be able to secure for their families.
Research shows that happier, healthier employees are more engaged, effective employees. And that when employees feel taken care of by their employer, they’re more likely to stay where they are.
That said, implementing insurance that’s tailored to your business requires some research and planning. Whether you’re creating your first employee benefits plan or retooling one you already have, following this implementation strategy will help ensure you get it right.
1. Conduct a Detailed Needs Assessment
When it comes to employee benefits, a one‑size‑fits‑all approach doesn’t work. In order to provide meaningful benefits, you should first identify:
- Risks specific to your business (for example, do you need business life insurance on your leaders?), and
- Your employees’ priorities (which nearly always starts with health insurance, followed by in‑demand supplemental coverages).
Your group’s demographics (age, health status, family makeup) plays a key role here, as does the structure of your business. Along with your leadership team, be sure to ask employees for their input—because good communication is essential to every successful employee benefits plan.
2. Do Your Market Research
Not all insurance plans—or carriers—are created equal. Coverages, pricing and service levels vary. That’s why it’s important to research your local SME insurance market. In addition to plan design, identify which carriers have the strongest track records, industry ratings and customer reviews.
Compare notes with other businesses in your area (you may get some helpful tips and introductions). Align yourself with an experienced insurance advisor who will not only help you compare plans, but guide you through each step of your implementation strategy.
3. Set a Realistic Budget
Most employee benefit plans are funded on a cost‑sharing arrangement between employers and employees. Many employers view their contribution as an investment in their people, operations and future success.
It’s critical to determine what both the company and employees can actually afford (once you factor in premiums, deductibles, copays, etc.). This will impact what you ultimately choose.
It’s possible you might not be able to afford everything you want right away. But if you’ve conducted a thorough needs assessment, you’ll be able to distinguish between your must‑haves and nice‑to‑haves—so your choices will be clear.
4. Offer Employees Flexible Options
One smart way to stretch your premium dollars is to offer employees a mix of voluntary and company‑subsidized coverages.
For example, you might fund a certain percentage of your health plan premiums and perhaps a basic amount of term life insurance—while giving employees the option of purchasing additional life insurance and other supplemental coverages independently.
This makes a wider selection of coverages accessible to them, at potentially more affordable group rates. It also allows each employee to customize their benefits package to their specific situation, which is associated with increased job satisfaction.
5. Focus on Communication
The better your employees understand their coverage options, the better their decision making will be—so factor good communication into your rollout. Give employees multiple opportunities to learn about their choices before they need to complete enrollment, in person, online and perhaps in materials they can take home.
Your insurance company and advisor should be equally invested in making your enrollment successful. Make sure that your insurer provides clear, thorough enrollment materials, and that your advisor is committed to providing helpful enrollment meetings and educational sessions.
6. Ensure Legal Compliance
Many countries and localities have specific regulations regarding employee benefits. While you may already be familiar with these, your insurance company and advisor should also serve as expert resources when it comes to legal compliance.
In short, always verify that the plans you choose are compliant on both the national and local levels—and that your advisor will keep you abreast of any changes in regulations from year to year.
7. Reevaluate Your SME Insurance Every Year
Most employee benefits are renewed annually. This is your annual opportunity to improve your offerings to employees.
To make the most of your renewals, monitor how your program is fairing throughout the year. Are employees pleased with their coverage? Are they receiving prompt claims service from your carrier? Is there a new benefit they’d like to see offered?
Ensuring your benefits are competitive not only builds employee loyalty, it drives productivity and may enhance business resilience and long‑term success.
Finally, Make Your Plan Your Own
Your business is unique. So is your workforce. What works for the business next door may not work for you—and that’s to be expected.
For example, companies in some industries may have more specific requirements. Different leadership teams—such as women‑led businesses—may have different priorities as well.
Whatever the case, a responsive insurance carrier and advisor will work with you on your own terms. At PALIG, we offer highly competitive SME insurance solutions, back by more than a century’s worth of financial strength—delivered by agents and brokers who provide exceptional, personalized service to clients.
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This article has been prepared for information purposes only. Some products may vary by jurisdiction and may not be available in all jurisdictions. All products are subject to exclusions and other applicable terms and conditions.