Startups are hard to manage given the constant need for operating funds. With the right investors, startups can fly off well. But people only step into a job setup when they see some perks and job security. One of the ways to ensure job security is to provide employees with insurance that can help them in their time of need.
However, getting insurance for small groups of employees is slightly difficult because they do not qualify as a real group. Wholesale protection, also called franchise insurance, has been introduced in the market to cater to such groups. The only difference between the right coverage and franchise insurance is that the latter is group insurance, wherein individuals have their policy on hand instead of the same terms and conditions being applicable to everyone.
The insurance rates for group policies are same across the board, but in wholesale insurance, the individual decides the prices. Wholesale insurance considers the personal situation of each employee and their capability to pay premiums. For example, someone with a better salary in a startup will have more money to spend on insurance compared to others. Similarly, someone with two earning members in the family might be able to pay more toward wholesale coverage as the other member can take care of things back home.
Wholesale insurance is a health plan for organizations with fewer than 10 employees. The insurers are not in direct contact with the employees, except when they need to approach the employees for an employee benefit or a health plan. Given that state insurance laws do not apply to non-admitted carriers, they have greater assessing tractability to provide better/full cover in the case of devastating events. Specific requirements such as state licensing, filing, and reporting of issues for availing a claim are entirely different for non-admitting carriers.
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The business of wholesale insurance takes place in an entirely different manner. The retail agents of the company are the ones who track down such deals and talk employers into prospective sharing of employee coverage. Once the employer agrees and buys into the idea of insurance for employees, the wholesale agent takes over and informs the employer about the details of the protection and the necessary documents required to complete the process.
The wholesale agent draws up plans considering the individual requirements of each employee in the company and understanding the history of pre-existing health issues. The employer reviews the plan details and decides whether the company will make a part payment toward the insurance policy drawn upon the employees. It is upon the company to pay all or a part of the insurance premium.
Wholesale insurance products for small businesses are sold to those who work in high-risk chemical factories or run the risk of getting inflamed by chemical supplies, safety products for transportation from one city to another, organic integrity products used in the construction business and other such businesses, wherein the chances of getting physically disabled are high. It is essential for the employer to read the documents and the events that can trigger a claim given that the policy will be rendered useless if the nature of the job that can lead to claim is not mentioned in it.
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