Insurance Implications Of Employee Wellness Programs

Companies today are increasingly offering employee wellness programs. These perks benefit employees and companies in several ways. However, if you’re a business owner who is thinking about implementing one, it’s crucial to consider the business insurance implications.

This article provides valuable insights into wellness programs in the workplace from an insurance perspective. Read on for details.

Benefits of wellness programs for businesses and employees

Wellness programs are designed to promote better health and wellness in employees and empower them to reach their goals. These initiatives are more common in large companies, where you might hear them referred to as corporate health and wellness programs or just corporate wellness programs. But small businesses can and do offer them as well.

Why do companies implement these programs? There are two main reasons. First, businesses benefit in multiple ways from making employee health and wellness a priority, including:

Increased engagement and productivity. Businesses that sponsor wellness programs typically see improved morale and motivation, enhanced creativity, better problem-solving, and reduced absenteeism. Those factors create workplaces where people are happier and get more done each day.
Reduced healthcare costs. Health insurance companies often charge lower premiums to businesses with wellness programs.
Enhanced recruiting and improved retention. Businesses find it easier to attract and retain great people when they offer a wellness program. That can be a difference-maker in a competitive job market.
Improved reputation. Companies that demonstrate they care about their employees are viewed more favorably by potential customers or clients, business partners, and others. That opinion can open the door to new business opportunities.
Better bottom line. The benefits above and others can combine to improve profitability.

The second reason for offering an employee wellness program is, of course, that it benefits employees. Workers who participate in a program enjoy advantages like:

Improved physical health
Regular exercise, balanced nutrition, adequate sleep, and other areas that wellness programs focus on help employees reach their full potential.

Reduced stress
Working out and taking other steps to improve physical health can impact mental health, as well. Program participants tend to be calmer, happier, and have a more positive outlook, even in the face of work stresses like deadlines or dealing with demanding customers.

Enhanced focus
As a person’s physical and mental health improves, so does their ability to concentrate on work tasks.

Increased job satisfaction
People with access to wellness programs feel valued and cared for, which can increase their job satisfaction and loyalty.

Stronger social connections
Employees who exercise together, compete in wellness challenges, or participate in other social activities get to know each other better and develop stronger bonds.

Improved financial health
Some employee wellness programs have a financial component covering topics like budgeting, debt management, and financial planning. People who get a better handle on their finances tend to be happier and more immersed in their work.

As you can see, there are many benefits of a wellness program at work. Still, it’s important to remember that offering a program creates a new facet in your relationship with your employees, and that change can increase the company's exposure to business risks.

How employee wellness programs can affect business insurance

Despite the many benefits of employee wellness programs, it’s accurate to say that they create a degree of risk, including the risks of injuries from exercise, property damage, and others. For instance, on-site gyms or fitness classes carry the potential for participants to get hurt. Similarly, offering health screenings or mental health counseling could increase the risk of liability claims if the services aren’t managed carefully.

Still, the overall impact of employee wellness programs can be positive from an insurance claims perspective. People who are healthier and have better mobility are less likely to get hurt while working. That reduces the risk of workers’ compensation claims, which can translate into a lower workers’ compensation insurance premium for the business.

Improved employee mental clarity thanks to a wellness program is an advantage for businesses, especially those that provide professional advice or services. Better decision-making can reduce the risk of client lawsuits and professional liability (errors & omissions) insurance claims. Similarly, people who are engaged and alert when operating company vehicles are less likely to be at fault in collisions, and that reduces the likelihood of commercial auto insurance claims.

Important considerations when launching an employee wellness program

If you’re thinking about offering a wellness program at your business, good for you—and your employees! You’re probably envisioning a healthier, happier workforce, and that’s a great goal. Just be sure to consider how implementing the program impacts your relationship with your workers and the risk of insurance claims.

Before implementing your program, you should consider talking with a lawyer about the business’s liability for injuries and other incidents. They can advise you on how to structure your program, how to communicate the voluntary nature of the initiative, whether having employees sign waivers is recommended, and other important matters.

If you have questions about your biBerk insurance policies and how a wellness program could affect claims, we’re happy to answer them. Contact us at your convenience.

Don’t have insurance coverage for your business yet? Remember that you can learn about our coverages, get instant quotes, and buy policies all online. And if you need to report a claim, you can do that on our website, too.

We make it easy to get the financial protection you need whenever it’s convenient—maybe as you cool down from your next workout!

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