What is
Group Risk?

Group risk benefits are a useful tool for managing and mitigating some of the risks associated with employing people.

They can also help recruit, retain and engage talent and can support the values and culture of an organisation. Group risk benefits allow employers to reinforce their position as a caring employer, throwing a financial lifeline to people when they need it most.

Managing employee risk

Group risk benefits are a high value, low cost option for employers looking to offer something more to their staff.

Employers may promise certain benefits to employees as part of the contract of employment. Rather than bear all of this risk themselves, many employers choose to take out group risk insurance policies to cover some or all of their liability for death benefits, long term sick pay and critical illness benefits. Provided in isolation or as part of a wider benefits package, group risk benefits can give employees access to insured financial protection cover they might not be able to either afford or access for themselves.

In addition to financial protection, many insurers partner with expert wellbeing providers to deliver complementary support services, which employers can use to enhance their employee health and wellbeing strategy and health pathways.

How does group risk work?

Group risk policies are commercial contracts which support employers in meeting their contractual promises and legal obligations to their employees. The employer is generally the policyholder, pays the premiums and claims are made by the employer in respect of their employees. Generally any claim is paid to the employer (or often the trustees of the pension scheme in the case of group life assurance). Group risk policies are generally taken out through an adviser who is responsible for helping the employer to decide on the design of the benefit structure, who will be covered by the policy, the suitability of the policy and the selection of a provider.

Expert advice should always be taken when setting up or reviewing a group risk insurance scheme to ensure that optimum cover is provided, any extra support services offered alongside the policy are used and all tax efficiencies are maximised.


Group risk products


Life Assurance

This solution provides a benefit on an employee’s death, with a tax-free lump sum up to the Lump Sum and Death Benefit Allowance. Benefits can be provided via the Registered or Excepted Trust routes.


Income Protection

Provides an income during longer-term sickness absence, after any short-term occupational sick pay has ceased. May also include complementary interventions, which could reduce the duration of absence.


Critical Illness

Group Critical Illness works by paying a tax-free lump sum to an employee on diagnosis of one of a defined list of serious medical conditions or on undergoing one of a defined list of surgical procedures.