How To Get Health Insurance For Your Small Business

If your small business is ready to shop for health insurance for its employees, here's how to get started in just five easy steps.

WRITTEN & RESEARCHED BY
Erica Seppala
Editor & Senior Staff Writer

Apr 17, 2026

UPDATED

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Key Takeaways

Small business health insurance involves setting a budget, choosing benefits, and comparing providers to find the right plan.
Offering health insurance can help attract and retain employees while supporting their well-being.
Costs vary, but tax credits and deductions may help offset the expense for eligible businesses.

Small business health insurance can be a valuable employee benefit, but choosing the right plan can feel complicated. This step-by-step guide explains how to get health insurance for your small business and compare your options.

Table of Contents

How To Get Health Insurance For Small Business
Why Should I Provide Health Insurance?
The Bottom Line On Small Business Health Insurance

How To Get Health Insurance For Small Business

There are five basic steps to securing health insurance coverage for your employees.

Step 1: Set A Budget For Health Insurance

Cost is a key factor when choosing a health insurance plan.

Start by determining how much your business can contribute toward employee coverage. Many employers share premium costs with employees, so it’s important to set a budget that balances affordability with meaningful coverage.

Step 2: Decide What Health Insurance Benefits You Need

Next, identify the coverage features that matter most for your business and employees.

Consider factors such as:

The number of employees you need to cover
Whether you’ll offer coverage to dependents or part-time staff
Additional benefits like dental, vision, or wellness programs
How much of the premium your business will cover

Understanding these details will help you narrow your options and choose a plan that fits your needs.

Step 3: Gather Documentation For Accurate Quotes

To receive accurate quotes, you’ll need to provide basic information about your business and employees.

This may include:

Business name, address, and tax ID
Number of employees
Employee details such as age, location, and dependents
Information about tobacco use

Having this information ready can help streamline the quoting process.

Step 4: Compare Providers & Plan Options

There are several ways to shop for small business health insurance:

SHOP marketplace: Businesses with fewer than 50 employees may be eligible for coverage through the Small Business Health Options Program (SHOP), depending on their state.
Direct insurers: Many insurance carriers offer plans directly to small businesses.
Private exchanges or purchasing alliances: These platforms allow employers to contribute a set amount while employees choose their own plans.
Professional employer organizations (PEOs): PEOs can manage HR functions, including benefits administration.
Insurance brokers: Brokers can help compare plans and find options that fit your budget and coverage needs.

When evaluating providers, consider factors such as pricing, coverage options, provider networks, and customer service.

Step 5: Compare Health Insurance Quotes

Once you’ve gathered quotes, review them carefully.

Look beyond price and compare:

Coverage details
Premiums and out-of-pocket costs
Provider networks
Policy terms and limitations

Choosing the right plan involves balancing cost with the level of coverage your employees need.

Why Should I Provide Health Insurance?

Even if you’re not required to offer health insurance, it can be a valuable benefit for both your employees and your business.

Supports Employee Well-Being

Health insurance can help employees manage medical costs and reduce financial stress. Access to coverage can also support overall well-being and productivity.

Helps Attract & Retain Talent

Offering health benefits can make your business more competitive when hiring and retaining employees. Many job seekers consider health insurance an important part of a compensation package.

Potential Tax Advantages

Small businesses that meet certain requirements — such as having fewer than 25 full-time employees, paying average wages below a set threshold, and covering at least 50% of premiums — may qualify for the Small Business Health Care Tax Credit through SHOP.

Even if you don’t qualify for the credit, employer contributions toward health insurance premiums are generally tax-deductible. Consult a tax professional for details specific to your situation.

The Bottom Line On Small Business Health Insurance

Providing health insurance is an added expense, but it can offer meaningful benefits for your employees while supporting your business’s long-term growth.

As you evaluate your options, consider both the cost and the value of offering coverage as part of your overall compensation strategy.

Want to learn more about small business health insurance? Get started with The Ultimate Guide To Small Business Heal th Insurance. And if you’re ready to get started, kick off your search with the best insurance for small businesses.

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Erica Seppala

Editor & Senior Staff Writer at Merchant Maverick

Erica has been writing about small business finance and technology since 2008. She joined Merchant Maverick in 2018 and specializes in researching and reviewing business software, financial products, and other topics to help small businesses manage and grow their operations. Her expertise has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll, a graduate of Limestone University, and currently resides in Greenville, South Carolina.

View Erica Seppala's professional experience on LinkedIn.