Small Business Group Benefits in Ontario
You do not need a large company to offer great benefits. We connect Ontario small businesses with licensed advisors who build affordable health, dental, life and disability plans for teams of 2 to 50 people.
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Group Benefits for Small Businesses
Small businesses compete with large employers for the same people. A benefits plan is often what tips a candidate toward your offer, and it shows your existing team that you are investing in them.
The good news is that small business plans are more flexible than most owners expect. Insurers pool small groups together so a two or five person company can access the same types of coverage as a large employer, with a plan designed around what matters most to your team.
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We connect you with an advisor who works with businesses and families like yours.
Licensed life and health advisors
Life and health insurance advisors in Ontario are licensed by the Financial Services Regulatory Authority of Ontario (FSRA).
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Once we receive your information, a professional in our network will connect with you within 24 hours.
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How small business benefits work
Who qualifies for a small group plan
Many insurers write plans for groups as small as two or three people, and some programs accept a single incorporated owner. Employees usually need to work a minimum number of hours per week, and there is often a short waiting period before new hires join.
Incorporated businesses and many sole proprietors
Owners can usually be covered along with staff
Part time employees may qualify if they meet the hours requirement
How pooling keeps small plans stable
Small groups are usually pooled with other small employers for large claims such as expensive drugs or disability. Pooling helps protect a small business from a single large claim driving up renewal rates.
Group benefits and the Canadian Dental Care Plan
The federal Canadian Dental Care Plan helps residents without access to dental insurance and with adjusted family net income under $90,000. If you offer dental coverage, your employees generally will not be eligible for it, so it is worth deciding what your plan should include with that in mind.
What a small business plan can include
Build the plan in layers. Most small businesses start with health and dental and add the rest over time.
Extended health care
Covers costs that OHIP does not.
- Prescription drugs
- Physiotherapy, chiropractic, massage therapy and psychology
- Vision care and eye exams
- Medical equipment and supplies
- Emergency travel medical coverage
Dental care
Preventive care such as cleanings and checkups, basic care such as fillings, and optional major restorative work and orthodontics.
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Life, AD&D and disability
Group life and AD&D provide a benefit to an employee’s family. Long term disability replaces part of an employee’s income during a lengthy illness or injury, and is often the coverage employees value most once they understand it.
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Health spending account top up
Adding a health spending account gives employees flexibility for expenses the plan does not fully cover, with a fixed and predictable cost for the business.
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Employee assistance and virtual care
Confidential counselling, mental health support and virtual doctor visits are popular additions that usually add little to the cost of a plan.
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What small business benefits cost
Published Canadian industry guides put combined health and dental coverage at roughly $150 to $600 per employee per month, depending on the plan, the size of the group and whether employees choose single or family coverage. Some guides suggest budgeting around 10 to 15 percent of payroll for a comprehensive plan. Ways to manage cost:
Choose your maximums
Annual maximums for drugs, dental and paramedical services have the biggest effect on price. Start modest and enhance the plan as you grow.
Share the premium
Many employers pay the health and dental premium and have employees pay for disability coverage, which can make disability benefits tax free to the employee if they need them.
Add a spending account
A spending account caps your cost at a set amount per employee, which makes it a predictable way to enrich a basic plan.
Why small businesses offer benefits
Hiring and retention
Benefits are one of the first things candidates ask about. For trades, clinics, restaurants and professional firms competing for the same people, a plan can be the difference between an accepted offer and a lost hire.
Tax efficient compensation
Employer paid health and dental premiums are generally not a taxable benefit to employees, so a dollar spent on benefits can go further than a dollar of salary. Your accountant and advisor can confirm the details for your business.
Small Business Group Benefits FAQs
How many employees do I need for group benefits?
Many insurers write plans for groups as small as two or three people, and some programs accept a single incorporated owner. An advisor can tell you which options fit your team.
Can the owner be covered on the plan?
Usually yes. Owners who work in the business can typically be covered along with their employees.
Do I have to cover part time employees?
Plans set a minimum number of hours per week to be eligible. You can often choose a threshold that includes regular part time staff.
Can employees opt out?
Employees who have coverage through a spouse’s plan can often waive health and dental. Participation rules vary by insurer, and a minimum percentage of eligible employees usually has to join.
How long does it take to set up a plan?
Once you choose a plan, most small business plans can be set up within a few weeks. Your advisor handles the application and employee enrolment.
What happens at renewal?
Rates are reviewed each year based on claims, inflation and the pool. If an increase is large, an advisor can adjust the design or shop the plan with other insurers.
What to expect from a benefits advisor
A licensed advisor handles the details so you can make a clear decision.
1Discovery call
Share who needs coverage, what matters most and your budget. For businesses, bring your current plan and renewal if you have one.
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2Plan design
Your advisor recommends coverage levels and cost sharing that fit your needs, and explains the trade offs in plain language.
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3Compare insurers
Your advisor gathers quotes from multiple insurers and compares price, coverage and service side by side.
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4Enrol and support
Once you choose, your advisor handles the application and enrolment, and stays available for claims questions and renewals.
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