Get group insurance plans for your business in Canada

A group benefits plan is a set of coverage and perks that employers provide to their business employees as part of a total compensation package. While these benefits are a form of non-wage compensation, they are designed to help attract and retain talent for the company, improving the overall well-being and financial security of employees.

Group insurance is a key component of group benefits. With this, individuals won't need to find coverage all on their own (and risk being denied due to certain factors, such as having a pre-existing condition). The premiums on these insurance policies also tend to be cheaper as a fundamental principle of group coverage is risk pooling – insurers set a single rate which accounts for all the employees of the business at once.

Here is a quick overview of a few different payment arrangements a business can use for group insurance. Keep in mind that in most cases, the premiums are shared between the employer and the employees. 

As an employer, you'll need to first select a group benefits package for your employees. This can include any of the coverage types listed above (e.g. health insurance, life insurance, dental insurance) and more. The key is to choose a plan that will keep employees happy while balancing the overall cost. 

Eligible employees will then have the option to enroll in group insurance benefits. This typically happens when the employee starts working for the business. Companies may also have an annual open enrollment period where employees can sign up for new benefits, confirm their existing benefits, or make changes to their coverage. 

Employees can enroll in certain benefits while declining others. They may also want to increase their coverage (e.g. on a group life insurance policy) or extend their coverage to any dependents, such as a partner or child. 

While there are several different ways the group premium can be paid out (as outlined above), most companies have a share-pay system in which both the employer and the employees contribute. The share percentage should be declared ahead of time, and employees usually pay their part through a payroll deduction.

When needed, employees can then make a claim with the insurer. And while the process will differ depending on the company, necessary documentation or claim forms may be needed during the process. If approved, employees will then receive a payment or reimbursement for the insured expenses. 

Aside from insurance coverage, group packages also include non-insurance benefits. Below, we cover a few common ones that are used to improve employee well-being and promote work-life balance.

For small businesses, the average benefits plan can cost about 15% of the total payroll on an annual basis. However, some providers may offer specialized plans – designed for smaller firms – with premiums costing as low as 1 to 5% of payroll. To find the exact number you'll be paying, be sure to connect with one of our licensed brokers today.

The cost of group insurance can vary greatly – generally speaking, the more risk you and your employees bring, the more you'll need to pay. Here are a few factors that insurers use to help determine the exact number.