Business health insurance and corporate PMI, compared

Private medical insurance a company provides for its employees.

MoneyHelper says the more basic policies usually cover most in-patient treatments, such as tests and surgery, and day-case surgery, and some extend to out-patient treatment such as specialists and consultants.

HMRC treats employer-paid medical insurance as a taxable benefit for the employee. MoneyHelper ↗

Corporate PMI is private medical insurance bought by a company for its staff: the same thing as business or corporate health insurance.

HMRC’s manual describes the employer paying the premiums under a group insurance policy covering employees, and sometimes their families. HMRC EIM21760 ↗

Compare the same things on each quote: what the core cover includes, the out-patient limit, the excess, any option that only pays when the NHS cannot treat within a set time, the hospital list, the underwriting method, family cover and how staff are grouped.

Aviva lists an excess from £50 to £500, the six week option, limiting out-patient cover and reduced hospital lists as ways to reduce the cost. Aviva ↗

Yes. A director of a limited company can be covered like any employee, and HMRC says a director is chargeable on the premium.

Vitality says sole traders can set up a business policy just for themselves, but the premium may not be tax deductible.

AXA Health says that if you have a business bank account you can get business health insurance with it. Vitality ↗

Yes. HMRC says an employee is chargeable on medical insurance premiums the employer pays for them or their family.

GOV.UK says the employer reports it on form P11D and pays Class 1A National Insurance on the value, which is the cost of providing it.

The Class 1A rate for 2026 to 2027 is 15%.

Royal London says relevant life premiums, by contrast, are not a P11D benefit. GOV.UK ↗

We do not rank insurers.

The FCA’s guidance separates information, which is statements of facts or figures, from advice, which is in effect a recommendation; an FCA-authorised adviser can recommend.

What each publishes about its own plans: Aviva’s Solutions is for businesses with 1 to 249 employees and Optimum for 100 or more; Bupa’s small business plan is for 2 to 249 employees and its corporate option for 250 or more; AXA Health lets a plan have up to 6 categories of cover. Aviva ↗

Health insurance pays for treatment while an employee is unwell.

Business life insurance pays a lump sum if the person insured passes away: death in service pays their family, and key person cover pays the business.

They do different jobs. Legal & General ↗