Excess Insurance

How an Excess Works

Excess Insurance cover is used by an increasing number of companies to reduce the overall cost of their Private Medical Insurance Cover.

​

An excess is the amount of money an employee is required to pay towards claims made on their private medical insurance (PMI) policy, if one is chosen by the employer.

​

The excess amounts in PMI policies typically range from £50 to £1,000 per person per year. In return for agreeing to pay an excess, the insurer will reward the company by reducing the employees’ premiums.

Reducing Benefit-in-Kind

Introducing an excess, followed by taking out an Excess Insurance Policy to cover the insured members' excess payments will, in the majority of cases, result in a reduction of the overall cost of health cover to the employer and the lowering of an employee's P11D rate, with the added benefit of enhanced shortfall protection cover (covering shortfalls of up to £500).