How Employee Health Insurance Ties into Business Continuity Planning

For UK SMEs, business continuity planning (BCP) is essential to managing risks and ensuring operations remain stable during unforeseen disruptions. While many businesses focus on supply chain resilience and IT security, one critical element that often gets overlooked is employee health insurance. By integrating health insurance into BCP, businesses can safeguard their workforce and maintain long-term operational stability.

The Role of Employee Health Insurance in Business Continuity

Health insurance plays a crucial role in keeping employees healthy, reducing absenteeism, and ensuring that the workforce remains productive, even during crises. In today’s post-pandemic landscape, the importance of employee health is increasingly recognised as essential for business continuity. According to Aviva’s 2024 Health of the Workplace Report, SMEs that offer health insurance see a 28% reduction in absenteeism, while companies that fail to invest in health benefits face significantly higher staff turnover and sick days.

Moreover, access to preventative care, mental health support, and swift treatment via health insurance can help employees recover faster, allowing businesses to maintain productivity. Aviva’s report further highlights that 56% of employees with access to private health insurance feel more valued, which translates to better performance and higher retention rates.

Reducing Absenteeism and Presenteeism

Absenteeism is one of the biggest threats to business continuity, particularly for SMEs, where the absence of a few key staff members can significantly impact daily operations. A 2023 study by Vitality found that absenteeism and presenteeism (where employees are at work but not fully productive due to illness) cost UK businesses an average of £61 billion annually. Health insurance, especially plans that include mental health coverage, can help address these issues by providing employees with access to quick and effective healthcare, reducing the time they spend away from work.

Case Study: Network Rail

Network Rail, one of the largest employers in the UK, offers private health insurance to its employees as part of a broader commitment to staff well-being. During the COVID-19 pandemic, their health insurance plan was a key factor in enabling the company to maintain continuity. With access to remote GP appointments, mental health support, and fast-track hospital treatment, employees could quickly address health concerns and return to work faster. This meant that despite the challenges of the pandemic, Network Rail managed to keep its critical services operational, while also reducing absenteeism and boosting employee morale.

A Guardian report from 2023 showed that, thanks to their health insurance benefits, Network Rail saw a 32% decrease in long-term sickness absence, enabling them to maintain operational stability during one of the most challenging periods in recent history.

Health Insurance and Crisis Management

The COVID-19 pandemic taught businesses worldwide the importance of preparing for health-related disruptions. Companies with comprehensive health insurance plans were able to manage employee health concerns more effectively, keeping business operations running even when faced with unprecedented challenges. SMEs that offer health insurance can help employees access critical healthcare services, reducing the impact of illness on both employees and business continuity.

Access to private GPs, physiotherapy, and mental health counselling ensures employees can get the treatment they need quickly, reducing long-term absences and the potential for staff shortages. This ultimately helps businesses maintain productivity, even in times of crisis.

Secure Your SME’s Future with Ascend Health

At Ascend Health, we understand that the health of your employees is central to the health of your business. By integrating health insurance into your business continuity plan, you can ensure operational stability and reduce absenteeism, all while providing your employees with the support they need.

Contact us today to explore how we can help you set up a tailored health insurance plan for your business. Let’s work together to protect your workforce and safeguard your future. Reach out to Ascend Health to start your free consultation.

Other blogs which may be of interest:

The impact of group private medical insurance on-staff retention in the UK

Private medical insurance industry experiences growth surge

Any questions? Please don’t hesitate to contact one of our team.

Kristian.Breeze@ascendhealth.co.uk | Office: 01245 929129

Kristian Breeze - Healthcare Director