Benefits January 8, 2003

Small Biz Owners Like – But Don't Understand – Supplemental Insurance

January 8, 2003 (PLANSPONSOR.com) - Seventy-one percent of small-business owners feel supplemental insurance enhances the overall benefits package, but nearly half admit to having little or no knowledge about the policies, according to a recent survey by Inc. Magazine and the Allstate Workplace Division.
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Responding to the survey, 53% of small business owners see supplemental insurance as a means of providing peace of mind in the event of an emergency.   Regardless, only about one-third recognize that the policies allow employers to control group health care costs, are free to the employer and offer employees the convenience of payroll deduction.   Perhaps not surprisingly then, just 12% responded to using supplemental insurance as a recruiting and retention tool.

The same pattern was revealed in the overall perception of insurance benefits.   While 78% believe it’s important to offer quality insurance benefits, the same percentage fears the cost and time required for these benefits is too high.

Recognizing the need to for additional assistance in employee benefits matter, nearly half (47%) of small-business owners say they could use a helping hand with employee benefits, while 44% said they would like someone else to manage benefit issues entirely.

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