Insurance Types 101
One way Paychex Insurance Agency helps bring clarity to business insurance is through our Insurance 101 topics — providing business owners with quick information in plain language.
If you still have questions after reading our Insurance 101 topics, please call a licensed Paychex Insurance Agency Representative at 877-393-8868. We'll be glad to help you answer them.
How do you decide who and what to cover?
Before we can help you decide what types of insurance to offer, you'll need to know who and what you want it to cover.
Ask yourself these five questions, then talk with one of our licensed representatives to help determine which insurance plans and coverage are the right fit for yourself, your family, your business, and its employees.
- Are there any government mandated insurance plans you need to offer?
- Are you concerned about your business operations if you were ever unable to work?
- Do you see offering insurance as a way to attract and retain employees?
- Would you rather cover only yourself and your family?
- Would you allow employees to choose your offerings if they pay for their own benefits?
What types of insurance can you offer?
There are a wide variety of plans and policies offered by carriers across the country, but most can be summed up into two categories. Read our health and related insurance and property and casualty insurance sections for more information about these major insurance types.
Health and Related Insurance
To put it simply, health insurance and its related plans are about people. In the case of an accident or illness, these plans can help you, your family, or your employees pay for qualified medical care.
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Give yourself and your employees access to vital coverage including medical, dental, vision, life, and short- and long-term disability insurance.
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Voluntary insurance allows your employees to help determine their own insurance benefits, which they pay for out-of-pocket. Voluntary insurance may be used to establish your company's benefits package or supplement your current group benefits.
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Individual medical insurance helps keep rising healthcare costs in check through health, vision, dental, life, and short- and long-term disability plans for you and your family.
Should you choose group or individual health insurance?
Unless you are the only employee at your business, the question of whether to choose group or individual health insurance can be a complicated one.
Ask yourself these seven questions, then talk with a licensed Paychex Insurance Agency Representative at 877-393-8868 to find out more about your options.
- Are you looking to insure your employees, or primarily yourself and your family?
- Have you ever been declined for insurance coverage?
- If you already have group insurance, how long have you offered it?
- How many employees are The term "Eligible" refers to the class or category of employees that will be offered the insurance. This is up to the employer. for coverage?
- Will you have at least In most cases 75% of your eligible employees must enroll in a group plan (or be enrolled in another group plan). participation?
- Will you contribute at least 50% refers to the percent of premium the employer must commit to paying in order to offer group health insurance. of the cost?
- If you're re-evaluating a current group insurance plan, is your main goal cost savings or improved benefit offerings?
What insurance is mandated by the government?
Of the many types of health and related insurance plans available to business owners, only a few are required by federal or state law. These include disability insurance in California, Hawaii, Puerto Rico, New Jersey, and New York. Disability insurance protects workers who become injured or ill due to non-work related circumstances, as opposed to workers' compensation insurance, which provides benefits to workers who become injured or ill as a result of their jobs.
For more information about our disability insurance partners, or about disability insurance in New Jersey and New York, please speak with a licensed Paychex Insurance Agency Representative at 877-393-8868.
How much coverage do you need?
Depending on the type of plan, it can be difficult to determine the right amount of coverage for you, your business, and your employees. For example, with life insurance you could consider the amount needed to match your salary between now and the day you plan to retire — but disability insurance would require a completely different set of assumptions.
Fortunately, our licensed insurance representatives are well versed on the many types of insurance we offer, and can discuss your options based on your personal and professional situation. Call 877-393-8868 for the information to decide how much coverage you really need.
When should you re-evaluate your insurance needs?
If you already offer insurance, renewal time is a chance to take a fresh look at your insurance. But in reality, the sooner you re-evaluate your plans, the sooner you'll benefit from coverage that truly fits your current situation.
When you offer health or related insurance through Paychex Insurance Agency, we re-evaluate your coverage each year as your life and business changes. If your current coverage isn't the best fit anymore, we'll help you decide on a new plan that makes the most sense for where you and your business are today.
Property and Casualty Insurance
Unlike health insurance, which protects people, property and casualty insurance covers the physical assets that are vital to your success and that of your business.
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If you or your employees become disabled due on an on-the-job injury or illness, workers' compensation insurance protects your business from lawsuits while covering the necessary medical care.
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These plans include several policies that protect your business from circumstances that could negatively affect your operations. Policies include property, casualty, liability, commercial auto, and more.
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Individual property and casualty insurance helps protect policyholders and their families with policies that include personal auto, liability, and homeowners' insurance.
What insurance is mandated by the government?
Of the many types of insurance plans available to business owners, only a few Property and Casualty policies are required by federal or state law. These include Workers' Compensation, personal or commercial auto, and homeowners' insurance.
Paychex Insurance Agency can help meet your obligations with property and casualty plans from highly-ranked national and regional carriers. For more information, please speak with a licensed Paychex Insurance Agency Representative at 877-393-8868.
How much coverage do you need?
With property and casualty plans covering a wide variety of assets, it can be difficult to determine the right amount of coverage for each policy on your own.
Fortunately, our licensed insurance representatives are well versed on the many types of insurance we offer, and can discuss your options based on your personal and professional situation. Call 877-393-8868 for the information to decide how much coverage you really need.
When should you re-evaluate your insurance needs?
If you already offer insurance, renewal time is an obvious chance to take a fresh look at your insurance. But in reality, the sooner you re-evaluate your plans, the sooner you'll benefit from coverage that truly fits your current situation.
When you have property and casualty insurance through Paychex Insurance Agency, we re-evaluate your coverage each year as your life and business changes. If your current coverage isn't the best fit anymore, we'll help you decide on a new plan that makes the most sense for where you and your business are today
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