Workplace insurance perks can cover a range of benefits — from health coverage and life insurance to group discount programs for home, car and other types of policies. Although insurance perks are just one component of a comprehensive benefits package, they’re often the most valuable — for employers and employees.

The importance of offering insurance as a perk

In a competitive labor market, offering insurance as a perk is a common — and often expected — benefit. According to the U.S. Bureau of Labor Statistics, nearly 70% of employees in the private sector have access to employer-provided medical care benefits. The International Foundation of Employee Benefit Plans (IFEBP) found that organizations offering health and voluntary benefits, including insurance, report higher levels of employee retention and engagement compared to those that do not. A more loyal and productive workforce can translate to reduced costs and contribute to a business’ long-term success. Companies without these benefits often face increased turnover, higher recruitment costs and diminished employee morale.

Types of insurance benefits employers can offer

Life and disability insurance

Life and disability insurance can help provide financial support to employees and their families in the event of a serious illness, injury or death.

Health insurance

Health insurance is often the cornerstone of an employer benefits package. Health coverage can help employees access necessary care, reduce out-of-pocket expenses and support overall well-being through preventive health programs.

Home, umbrella and other insurance with group program discounts

Employers can offer employees access to car, home and other insurance at discounted rates as part of a group or affinity insurance program. These individual policies, typically offered as a voluntary benefit, may include the convenience of paying premiums via payroll deduction, along with better rates. For example, Farmers GroupSelect^® offers employees of participating employers:

• Auto insurance
• Home insurance
• Personal excess liability coverage

Supplemental insurance plans

Supplemental health policies such as accident, critical illness and hospital indemnity coverage can help cover expenses that primary health insurance may not. Other kinds of supplemental insurance include vision, dental, disability, even pet.

Company vehicles with auto insurance

Providing access to company vehicles covered by employer auto insurance can be a practical perk, particularly for employees who drive for work. These policies can help both the employee and your business in case of an accident.

See more insurance options from Farmers.

Best practices for starting an insurance benefits program

Choose which benefits to offer

Health-related benefits like medical coverage consistently rank as “extremely important” and “very important,” according to an annual survey by the Society for Human Resource Management. Financial benefits like retirement savings plans and group programs offering discounts on insurance can also be important.

Consider the demographics and needs of your workforce. Are your employees mostly younger workers, or do they tend to be older with families? Offer a range of options to help your benefits package meet the diverse needs of your employees.

Evaluate and select an insurance provider

Insurers that offer flexible coverage options, competitive rates and strong customer service can help employers build and manage benefit programs that attract and retain skilled, valuable employees. With nearly 100 years of experience and a reputation for excellent customer service, Farmers is a trusted insurance brand chosen by many employers and affinity groups.

Get the word out to employees

Clear communication is essential to helping employees make good use of their insurance benefits. Simple explanations and real-life examples can help demystify complex topics. To reach employees, use as many channels as you can, including:

• Clear and concise onboarding materials to engage new employees 
• Benefits booklets with plan details for new and existing employees 
• Group or one-on-one meetings to explain the benefit package’s value   
• Occasional reminders via text or email 

Engage employees in choosing benefits

Educational sessions and support tools can help employees make informed choices. When employees understand their options, they’re more likely to appreciate and use their benefits.

Future trends in workplace insurance benefits

The U.S. Government Accountability Office (GAO) reports that healthcare premiums will likely continue increasing, and employers are offsetting those increases by shifting more of the cost to employees. As a result, many employers may turn to no- or low-cost voluntary benefits that offer financial support or savings to bolster benefits, including affinity insurance programs with group discounts and easing mandates on remote work by offering flexible/hybrid workspaces.

Emerging trends in employee expectations for benefits have broadened. A few key trends:

• Personalized and flexible benefits that align with life stages (e.g., starting a family, buying a home, approaching retirement) vs. one-size-fits-all programs focused on healthcare and retirement savings.  
• Wellness as a culture – not just a benefit. Think: access to wellness apps and fitness facilities, and other daily perks like healthy snacks in the break room or in-office programs that reinforce mindfulness, health and well-being.  
• Remote/hybrid work options that offer flexible schedules. 

Can technology help in managing insurance benefits?

Online platforms have changed the way employers can manage insurance benefits. This technology can simplify enrollment, claims management and policy updates. It also can improve data tracking. Knowing which benefits employees use most (or not at all) and other streamlined data allows HR teams to tailor and optimize benefits to better suit employee needs.

Predictions for the evolution of workplace perks

In the coming years, insurance as a workplace perk will likely continue to evolve as part of a holistic approach to employee well-being. Expect more emphasis on:

• Mental health support 
• Financial wellness tools 
• On-demand insurance options