What it is for
A business depends on people. Personal insurance for businesses does two jobs: it looks after employees with benefits they value, and it protects the business itself when a key person is no longer there.
Who typically needs it
- Employers who want to attract and keep good people.
- Businesses where one or two people bring in most of the revenue.
- Companies with partners or shareholders who want a plan for what happens if one of them dies.
- Organisations, associations and schools that want organised cover for staff or members.
The main solutions
Group health plan
Health cover for staff and, if you wish, their families, often designed to complement GESY. It is one of the benefits employees value most, because they actually use it.
Group life and accident cover
A sum for an employee’s family on death or disability. One set of terms for everyone and simple administration for the business.
Provident fund or group pension
Retirement savings with contributions from employer and employee. It helps your people close the income gap they will face in retirement.
Key person insurance
The business insures someone who is critical to its revenue. If that person dies or can no longer work, the money helps cover lost revenue and the cost of replacing them.
Partner and shareholder protection
Life cover combined with an agreement between the partners, so that those who remain can buy the share of the one who died from their family without having to sell the business. The agreement is drawn up with a lawyer.
Employers’ liability insurance is compulsory for anyone with employees in Cyprus. It is separate from the plans above and does not replace them.
What drives the cost
- The number of people and the age profile of the group.
- The level of benefits and whether family members are included.
- The sector and the occupations.
- Whether membership is compulsory for everyone or optional.
- The claims history, which affects renewals.
Questions to ask before you decide
- How many people will be covered, and who: permanent staff, part-time staff, families?
- How much can the business spend per employee?
- Which benefits are essential and which are optional?
- What happens to the cover when someone leaves? Can they continue it individually?
- How is the premium worked out at renewal?
- How is it treated for tax, for the business and for the employee? Ask your accountant.
- How will staff be properly informed?
Common mistakes
- Choosing only on the first year’s price.
- Not explaining the benefits to staff: a benefit people do not understand is a benefit they do not value.
- Protecting the staff but not the owners and key people.
- Partners with no written agreement on what happens if one of them dies.
- Not reviewing the plans as the team grows or changes.
How to get started
- Map the team. How many people, their ages, the roles and who has a family.
- Identify the key people. Who is critical to revenue, to clients or to running the business — and do not forget the owners.
- Gather what you already have. Existing plans, any provident fund, partner agreements and renewal dates.
- Set priorities and a budget. What is essential this year and what can be added later.
- Check the tax side with your accountant. Before you decide on the structure and how it is paid.
- Decide and tell your staff. With a simple written summary of what is covered and who to call when they need help.
This guide is general information, not advice. Every policy has its own terms; a recommendation should be based on your own details, goals and commitments.
Next steps
Note how many people you employ, which plans you already have and what you want to achieve, then book an appointment about your business. The insurance check-up helps you organise the picture.
