Company directors’ health insurance

The benefits of health insurance for company directors

As a business owner, your success depends on you. Whether you're the sole director of a one-person limited company or in charge of a large corporation, sickness absence may mean that work doesn't get done or income begins to drop if you aren't around to make crucial decisions. Depending on your business structure, you may not receive sick pay and lose income when you're away from work.

Private health insurance lets you access treatment quickly and skip the NHS waiting list. Some policies also offer health monitoring and well-being support that could help prevent illness.

Top benefits for company directors:

• Avoid long waiting times via the NHS and be treated sooner
• More flexibility over when and where you are treated and by whom
• Access to a virtual private GP service, often 24/7
• Get back to full strength faster and avoid needing to take time off sick
• A private room when you're in hospital with relaxed visitation rules

How does health insurance for company directors work?

Private health insurance provides treatment for acute medical conditions. Depending on your chosen policy, you can tailor your cover and access eligible treatment by claiming online, by phone or via an app for medical conditions you suffer from after taking out a policy.

1. Compare policies to find the right provider for you
2. Pay your monthly premiums, use the remote GP service and if you need to, claim for other treatments
3. Be seen quickly, often in the private hospital of your choosing
4. Depending on the terms of your policy, your insurer will pay some or all of the associated fees

What type of health insurance can company directors choose?

As a company director, you can choose a policy that fits your circumstances. An individual private medical insurance policy will likely be suitable if you're a one-person business or only want to provide private health insurance for yourself as the business owner with your family, too.

If you have a larger workforce, an SME or Group health insurance policy might be a better fit.

1) Private medical insurance

A private medical insurance policy is ideal if you're the sole director and employee of your company or if you want to cover yourself, your partner or your family. The main advantage of this type of cover over an SME plan is that you can precisely tailor your cover to meet your individual needs and requirements. Many insurance providers offer SME health insurance for small companies, but some need at least three employees, so if you have fewer than that, private medical insurance may be your only option with them. Others go lower: Aviva's small business policy covers businesses with 1 to 249 employees, and WPA's starts at two.

2) SME health insurance

For businesses with between 2 and 249 employees, an SME policy is typically the best bet. In many ways, an SME scheme is similar to that of a larger group policy, and you'll need to decide what level of cover you wish to offer all of your employees and whether that differs based on seniority or job role.

If you have around 15 to 20 or more employees on your policy (it depends on the insurer: Bupa offers it to groups of 15 or more), then in addition to the usual moratorium and full medical underwriting options, you'll also get the option to go for medical history disregarded underwriting, which costs more but means that pre-existing conditions will be covered.

3) Group schemes

A group scheme is typically the best option for businesses with more than 250 employees. In most cases, the human resources team arranges these for businesses of this size to cover all employees and, of course, the directors.

4) Health insurance allowance

Finally, some businesses choose to go for an alternative: instead of providing a company-wide policy, they will give employees a personal health insurance allowance, which is added to their pay. This enables the employees to have the flexibility of choosing the type of policy and benefits they would like while also avoiding having a large group scheme to administer.

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Covering just yourself or your whole team? Compare plans from leading UK insurers and see which type of policy suits your business.

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What does health insurance for company directors cover?

Similar cover is available in individual or group policies. Group private medical insurance often provides additional benefits and services to help you manage your employees' health needs. Core cover forms the basis of every policy, and you can add optional extras to enhance your cover at an additional cost.

Here are some of the elements you'll usually find.

Core coverage

Core private medical insurance coverage provides access to a limited range of treatments and services, such as virtual GP appointments.

Some insurers also have a reward scheme, which provides perks and discounts that can help you save money. Vitality's comes with every plan, even one with only its core cover, and WPA members get special offers on things like gym memberships and fitness devices.

Here's what most private medical insurance offers as standard:

Inpatient and day-patient treatment

If you're admitted to hospital for treatment of an eligible condition, be that as an inpatient or day-patient, your insurance will cover the private hospital fees and that of the medical specialists looking after you. Core cover also may cover medication and some follow-up rehabilitation.

Cancer care

Nearly 1 in 2 of us will be diagnosed with cancer in our lifetime, so most private medical insurance policies include cancer treatment as standard. Policies vary in terms of the type of treatment they cover. Most health insurance includes surgery, chemotherapy and radiotherapy. Many also pay for treatments such as stem cell transplants, or licensed cancer drugs that the NHS doesn't routinely fund.

Many policies also offer services such as nutrition support.

Mental health support

Life can be stressful for small business owners and mental health issues can impact your ability to work effectively. Fast access to good mental health support can benefit you and your business enormously.

Some private health insurance policies include a few counselling or CBT sessions in their core coverage, such as WPA's (up to six) and Vitality's (up to eight a year), while others, such as Bupa and AXA Health, only pay for them if you add mental health cover. Some, Bupa included, also let you get started without a GP referral, so that you can begin treatment quickly. You can also pay more to enhance your mental health cover and get more treatment sessions and a broader range of treatments.

Limited outpatient coverage

Comprehensive outpatient treatment is only available as an optional extra. However, many insurers offer limited cover with their core policies. Some provide outpatient procedures such as cataract surgery, while others offer private diagnoses.

A private diagnosis usually pays for consultant appointments and diagnostic tests up to a yearly limit or a set number of appointments, and some policies pay for MRI, CT and PET scans in full.

Virtual GP

A virtual GP service lets you seek medical advice at a time that suits you, and some are open 24/7. You can book an appointment online for either a video or telephone consultation. Some insurers also offer face-to-face appointments for an additional fee, limiting how many you can have each year. A private GP can refer you for further treatment or issue a private prescription, so it's ideal for straightforward health issues or referral requests.

Health advice services and resources

Private health insurance includes access to telephone helplines offering general health advice. Many helplines are run by nurses, while others let you speak to a pharmacist, physiotherapist, midwife, or mental health specialist.

Many insurers also provide access to various self-help resources.

Optional extras

Adding optional extras to your policy will raise your health insurance premiums. However, they'll give you access to a broader range of private medical care and more treatment sessions. Most insurers offer increasing coverage levels so you can set financial limits that suit your needs and budget.

Here are a few of the options most private medical insurance offers.

Full outpatient coverage

As mentioned, most health plans include limited outpatient cover. Adding full outpatient treatment cover to your policy gives you access to consultant appointments, diagnostic tests and scans, and various outpatient treatments.

Some outpatient cover includes physical therapies such as physiotherapy, while other insurers offer this via separate therapies cover.

Therapies cover

As mentioned, many medical insurance policies now offer separate therapies cover to allow you to tailor your cover closely. Therapies cover includes various treatments depending on your chosen provider. Most cover physiotherapy, osteopathy, and chiropractic treatment, with some policies offering alternative therapies such as acupuncture and homoeopathy.

Enhanced mental health treatment

Some basic policies include a few counselling or CBT sessions, while others only cover them if you add mental health cover. Running a business can be stressful, so if you want to ensure you can access the best possible mental health treatment, it's worth adding enhanced mental health cover to your policy.

Additional cover can provide more counselling or CBT and offer different types of outpatient and inpatient treatment if needed.

Optical and dental cover

If you already pay for private dental care and eye tests, adding optical and dental coverage to your medical insurance can be a cost-effective way to access treatment and reduce costs.

Most policies pay towards regular check-ups, glasses, contact lenses and dental treatments, up to a yearly limit. However, depending on your chosen provider, some policies only pay for glasses and contact lenses but not eye tests. Other policies also cover emergency dental treatment abroad.

You could also consider a cash plan that lets you claim cashback for medical expenses, including eye care and dental treatment.

An extended hospital list

When you buy medical insurance, your policy comes with a hospital list confirming which private hospitals and treatment centres the policy covers.

A standard list typically excludes some of the more expensive hospitals, particularly in central London. Suppose your nearest hospital isn't included on a standard hospital list. In that case, adding an extended list can help you access treatment close to your home or office to get the full benefit from your medical insurance. You'll typically be able to choose between a wider list that still leaves out central London, or one that also includes central London.

Additional services on business health insurance policies

If you buy a group policy rather than an individual one, your insurance will likely include services to help you manage your policy and employees' health needs. Most group policies include information to educate your team about their coverage and services they can use.

The services available to a small business differ from corporate policies, where services reflect the demands of managing a larger team. Providers vary, so it's worth shopping around to see what's available and what will benefit your team.

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Core cover, extras and support services for your team vary by insurer. Compare business health insurance and see what each plan includes.

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What doesn't company directors' health insurance cover?

Every medical insurance policy has exclusions, meaning it won't cover every medical condition. Some exclusions are standard policy terms, while others vary depending on your medical history.

Medical insurance doesn't usually cover the ongoing management of chronic conditions such as asthma or high blood pressure that need long-term monitoring, although some policies cover treatment for an unexpected flare-up. Other standard exclusions typically include:

• Straightforward pregnancy and birth
• Treatment for addiction
• Self-inflicted injuries
• Cosmetic or weight loss treatment

Pre-existing conditions

With moratorium underwriting, a condition you had symptoms, treatment or advice for, usually in the five years before buying the policy, is treated as pre-existing and excluded, but your insurer may cover it once you've gone two continuous years on the policy without symptoms, medication, treatment or advice for it. With full medical underwriting, any exclusions are listed on your policy from the start.

How much does company directors' health insurance cost?

The cost of your private health insurance premiums depends on several factors. Each insurer assesses risk differently, so getting a range of quotes is wise.

Some risk factors are similar whether you choose an individual or group policy. Here are a few factors your insurers will consider whether you're buying individual or group health insurance:

• Your age (or the average age of your workforce).
• Where you live or do business.
• The amount of coverage your policy provides.
• The underwriting you choose.

To see how these factors change the price for you or your team, compare business health insurance quotes.

Individual policies

As a guide, private health insurance for one adult averages £82.53 a month in 2026, based on myTribe's analysis of 11,770 quotes from seven insurers in March 2026. Your age, where you live and the cover you choose all change what you'd pay.

Your circumstances can affect your premiums on an individual policy more than a group one. Premiums on a personal policy can be higher if you smoke or use nicotine products: Aviva and Bupa, for example, only give their healthy lifestyle discount to new customers who haven't smoked for a set time (12 months at Aviva, two years at Bupa).

On a new individual policy, you'll usually choose between two types of underwriting: moratorium and full medical underwriting. If you're switching from another insurer, you may also be able to carry your existing terms across. The underwriting you choose can affect what you pay, so it's worth comparing quotes for both.

With full medical underwriting, you provide medical history details, and your insurers can confirm exclusions for pre-existing conditions from the start. With moratorium underwriting, you don't give any medical information upfront, but claims can take longer.

Group policies

Premiums on group policies vary depending on the number of employees you want to cover. More people may increase the cost, but it typically lowers the cost per head. The type of work your business does is also relevant; if your employees have high-risk occupations, they're more likely to claim.

You can choose medical history disregarded underwriting if you cover around 15 to 20 or more employees, depending on the insurer. It's the most expensive option, but it lets employees access treatment without exclusions for pre-existing conditions.

Paying for health insurance

Whether you choose a group or individual policy, your company pays for your company directors' health insurance out of pre-tax income. When you pay for your medical insurance personally it comes out of your net income. However, getting professional advice on your business and personal tax position is essential.

Tax implications

Medical insurance premiums are usually an allowable business expense, so when your limited company pays for coverage, you can claim them against your corporation tax bill.

However, HMRC also treats health coverage as a benefit in kind, meaning your company needs to report it and you'll pay income tax on the value of the benefit (the cost of the premium). Your company must also pay Class 1A National Insurance on it, at 15% in the 2026 to 2027 tax year, and that applies to cover for directors as well as employees.

From 6 April 2027, employers will have to report medical benefits, including health insurance, through payroll, instead of on a P11D form after the tax year ends.

It's wise to get expert advice from your accountant or financial advisor regarding the tax implications when your limited company pays for your medical insurance. This can affect your personal tax position, and you'll need to consider the net cost to your business to determine the most tax-efficient way to pay. Factors such as whether you're a basic or higher rate taxpayer, whether you receive dividend income or salary, and whether you add family members to the policy all influence the tax implications.

Learn more about the tax implications.

Getting professional advice

We hope you've found this guide useful. At myTribe, we offer information and guidance to help you understand your health insurance options and make informed choices. However, we always recommend getting professional advice to ensure your health insurance meets your needs. When you request a quote through myTribe, we match you with one of our FCA-regulated partner brokers, who we vet and monitor.