Can Businesses with Fewer Than Five Employees Get Group Benefits?

Yes. Many insurance providers in Canada offer group benefits to businesses with fewer than five employees, and some plans are available for as few as two eligible employees. Small businesses can often choose from traditional group benefits, Health Spending Accounts (HSAs), or hybrid plans that provide affordable health and dental coverage while helping attract and retain employees.

Can a Small Business Offer Group Benefits?

One of the biggest misconceptions among business owners is that group benefits are only available to large companies.

In reality, many Canadian insurance providers offer plans specifically designed for small businesses. Whether you have two employees or twenty, there are benefit options that can fit your budget and your team’s needs.

For many small businesses, offering benefits can provide a competitive advantage when hiring and retaining employees.

What Is the Minimum Number of Employees?

The minimum number of employees depends on the insurance provider and the type of plan.

Generally speaking:

Business Size	Group Benefits Available?
Self employed with no employees	Traditional group benefits are generally not available, but individual health insurance may be an option.
2 to 4 eligible employees	Yes. Many insurers offer small group benefit plans.
5 or more employees	Yes. Most insurance providers offer a wide range of group benefit options.

Each insurance company has its own eligibility requirements, so it is always best to discuss your business with a benefits advisor.

What Can a Small Business Include in a Benefits Plan?

Group benefits are highly customizable. Employers can choose the level of coverage that fits their team and budget.

Common benefits include:

• Prescription drug coverage
• Dental care
• Vision care
• Paramedical services such as massage therapy, physiotherapy, and chiropractic care
• Mental health counselling
• Travel medical insurance
• Life insurance
• Disability insurance

Some employers also choose to include a Health Spending Account (HSA), which gives employees flexibility to claim eligible health expenses based on their individual needs.

Why Offer Benefits to a Small Team?

Employee benefits are about more than healthcare. They can strengthen your business in several ways.

Benefits may help:

• Attract qualified employees.
• Improve employee retention.
• Increase job satisfaction.
• Reduce absenteeism.
• Demonstrate that you value your team.
• Create a more competitive compensation package.

For many job seekers, benefits are an important factor when comparing employment opportunities.

Are Group Benefits Expensive for Small Businesses?

Not necessarily.

The cost depends on several factors, including:

• Number of employees
• Average employee age
• Types of coverage selected
• Coverage limits
• Cost sharing between employer and employees

Many small businesses begin with essential health and dental coverage, then expand their plan as the business grows.

Is It Worth Offering Benefits to Just a Few Employees?

For many Alberta businesses, the answer is yes.

Even a small benefits package can make your company more attractive to current and prospective employees. As competition for skilled workers continues, benefits have become an important part of a well rounded compensation package.

Offering coverage also demonstrates a commitment to your employees’ health and wellbeing, which can contribute to a more positive workplace culture.

Frequently Asked Questions

Can a business with only two employees get group benefits?

Yes. Many Canadian insurance providers offer group benefits for businesses with as few as two eligible employees.

Can owners be included in a group benefits plan?

In many cases, yes. Business owners who meet the insurer’s eligibility requirements can often participate in the group plan alongside their employees.

What if I only have one employee?

Eligibility varies by insurer. Some businesses may be better suited to an individual health insurance policy or a Health Spending Account until they grow.

Can small businesses customize their benefits?

Yes. Most group benefit plans allow employers to choose different types and levels of coverage based on their budget and employee needs.

Contact Lethbridge Health Benefits

If you own a small business and think you’re too small to offer employee benefits, you may be surprised by the options available. At Lethbridge Health Benefits, we help Alberta businesses find affordable group benefits and Health Spending Account solutions that fit their team and budget.

Contact Lethbridge Health Benefits today for a no obligation consultation and discover how employee benefits can support your business, no matter its size.