If you’re a small business owner, searching for insurance policies for small business can be a difficult task. Traditional healthcare insurance group policies work for large companies but aren’t the best fit for a small business looking for cheap business insurance online.
If you’re a small business owner looking for an alternative to group health insurance, you’re in the right place! There's a growing trend among small business owners to forego the traditional, one-size-fits-all employer-sponsored group plans and opt for a health reimbursement arrangement (HRA), which is the best cheap small business insurance.
If you’re a small business owner you’re probably wondering – do I need business insurance if I have an LLC? When it comes to covering the business itself, small business insurance will cover the business assets since an LLC only protects your personal assets from lawsuits.
Certain types of coverage will vary depending on where you live, like business insurance requirements by state. For example, workers’ compensation is the only type of business insurance required by some state laws. Most businesses with one or more employees need to have workers comp because it is business insurance required by law.
Separate from business insurance requirements by state is health insurance requirements for small business required by federal law. The Affordable Care Act (ACA) mandates that businesses with 50 or more full-time employees offer healthcare coverage to all. The problem many small business owners find themselves in is not being able to afford group insurance plans, or that the group plans don’t fit their needs.
This scenario is very common in todays workforce. Remote work was on the rise even before the pandemic, and covid firmly solidified this trend in place for the foreseeable future. Remote work has many benefits to both employees and employers. Employers benefit from the ability to pull from a larger talent pool. And with new benefits models like HRAs, employers can offer their employees benefits regardless of their location and specific business insurance requirements by state.
Instead of trying to find a group plan that works in multiple states, offer employees an Individual Coverage HRA (ICHRA) and let employees purchase plans in their local markets that best fit their needs.
An ICHRA gives employers an incredible ability to design and customize a plan that’s tailor-made for their organization.
ICHRA gives employers the flexibility to cover various types of employees (called classes) from full-time, part-time, seasonal, remote, and more. And since insurance rates vary by state, you can set your classes up by state.
Small business health insurance costs are just one reason why many small business owners are looking for an alternative. HRAs give businesses the flexibility and freedom they need to offer healthcare coverage in a way that works for them. In fact, we think it’s the best health insurance for small business!
HRA plans are an excellent alternative to traditional health insurance policies for small business. There are many advantages to HRAs for both the employer and the employee, including:
These are some advantages of HRAs for your employees:
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Connect with our team of experts to discuss why offering an HRA is worth it for your company.
As a business owner it can be challenging to keep up with small business insurance requirements. Some small employers (or nonprofits) may opt to not offer health coverage at all to avoid the insurance mess. But, the ACA requires that employers with 50 or more full-time employees must offer an affordable health coverage benefits option.
So if your business fits that criteria, there are small business insurance requirements for you. Fortunately, you have options! Here are your small business insurance options:
To get the full details on each one of these options, check out our Health Insurance for Small Business blog. But if you just want a quick breakdown, here it is.
Key takeaway – you don’t have to get stuck with the group insurance plans. Opt for an HRA – an excellent alternative to group insurance that fits the modern workforce.
If you’re a small business owner there are a few ways to get small business insurance for LLC and some things to consider.
You may be eligible to purchase small business health insurance for LLC for yourself, depending on how you set up your LLC tax structure.
If you have no employees (other than yourself), you usually can’t get small business health insurance or a group plan through your LLC, but you can still get individual health insurance.
If you get an individual health insurance plan, you can qualify for a single person HRA. This is great news!
It depends on how the plan and business are set up. In order for a business owner to participate in an HRA, they must be considered an employee of the business. Here’s a breakdown of business structures and what that means for your small business health insurance for LLC and HRA qualification.
If you’ve determined you’re eligible for an HRA through one of the qualifications listed above, check out this post to learn more about the types of HRAs that could work for you.
When you’re ready to get started with your small business HRA, you can get setup in just one afternoon. Talk with the knowledgeable team at Take Command about your specific situation, and we’ll help you determine which HRA plan is best for your small business. Take Command is the seasoned HRA administrator you need in your corner to help you select the best HRA for your business and enroll all eligible employees, manage reimbursement requests, and ensure you’re checking all your legal boxes.