A realistic budget for covering a 10-person team is £6,800–£9,000 a year — roughly £57–£75 per employee per month for mid-range cover, less for a young team. Schemes at this size use moratorium underwriting (no medical questionnaires), can go live within days of choosing an insurer, and premiums generally qualify for corporation tax relief.
- ✓Budget £6,800–£9,000 a year for a 10-person team on mid-range cover.
- ✓A team in their 20s–30s can come in nearer £4,500–£6,000 a year.
- ✓Moratorium underwriting is standard at 10 employees — no health questionnaires, cover live in days.
The real budget for a 10-person scheme
Across UK small businesses, group health insurance runs £35–£110 per employee per month with an average around £57. At ten employees on sensible mid-range cover — inpatient treatment, a capped outpatient allowance, mental health support, a £100–£250 excess — most firms land between £57 and £75 per head. That's an annual bill of roughly £6,800–£9,000, with insurance premium tax at 12% already included.
Because premiums are generally an allowable expense for corporation tax, the net cost is lower — at 25% corporation tax, a £8,000 gross spend costs the company around £6,000 after relief (before Class 1A NIC at 15%, which is itself deductible). The tax deductibility guide has the full workings.
Those figures assume employee-only cover. Adding partners and children — typically £40–£90 per family per month — is usually funded by employees through payroll deduction, so the company budget stays anchored to the headline per-head figure even as families join the scheme.
Per-head cost by the age of your team
Age is the single biggest pricing lever. The same cover for the same company costs very different amounts depending on who's on the list. Indicatively, for mid-range cover with a modest excess:
| Team profile (10 people) | Indicative per head/month | Indicative annual total |
|---|---|---|
| Mostly 20s–early 30s (e.g. young agency or startup) | £38–£50 | £4,500–£6,000 |
| Mixed ages, average mid-30s | £50–£65 | £6,000–£7,800 |
| Average age 40s (typical established SME) | £57–£75 | £6,800–£9,000 |
| Older or director-heavy team, average 50+ | £75–£110 | £9,000–£13,200 |
Location matters too — London and the South East price higher because private hospital costs are higher — and so do the classic levers: excess, outpatient limit and guided-consultant options. Trimming those can bring a comprehensive quote down by a third; the cost guide shows how each lever moves the number.
Setup: days, not months
At ten employees there are no medical questionnaires, no site visits and no lengthy negotiation. The process is: define who's covered, pick a cover level, compare like-for-like quotes, confirm the member list, sign. From decision to live cover is typically a few days to two weeks, and employees can usually claim from day one.
- Define eligibility objectively. All employees, or a clear category such as everyone past probation. At ten people, covering everyone is simplest and reads best internally.
- Choose the cover shape. Mid-range with a capped outpatient limit is the ten-person default; add full mental health cover if it matters to your team — it usually should, given mental ill health drives 41% of long-term absence.
- Compare insurers properly. Bupa, AXA Health, Aviva, Vitality, WPA and The Exeter will price the same ten people differently — sometimes by 30% or more.
- Confirm the list and start date. Names, dates of birth, postcodes. The insurer issues membership documents and staff register online.
Compare quotes for your 10-person team
Underwriting at this size: moratorium is the standard
Groups of ten sit squarely in moratorium territory. Conditions from the last five years are excluded at first, then generally become eligible again after two years without symptoms, treatment or advice for that condition. Nobody fills in a health form, which is why setup is so fast. Full medical underwriting is available if someone wants certainty about what's excluded, but it's rarely used at this size.
Medical history disregarded (MHD) — where pre-existing conditions are covered from day one — typically starts at around 15–20 employees depending on the insurer. That's worth knowing as a growth milestone: a ten-person firm heading for fifteen may qualify for an underwriting upgrade at renewal. The underwriting guide covers the detail.
One nuance worth asking about: continued personal medical exclusions (CPME). If some of your ten already hold personal policies — a director's individual plan, say — insurers can often carry that existing underwriting across to the company scheme, preserving cover for conditions a fresh moratorium would exclude. It's a standard request when personal cover becomes a company scheme, but you have to ask.
Tiering: same cover for everyone, or levels?
At ten people you have a real choice. A single benefit level for the whole team is the most common and the easiest to run — one price band, no internal politics. But tiering is perfectly workable at this size, provided the tiers follow objective criteria (role or seniority band, not named individuals).
- Flat scheme. Everyone gets the same mid-range cover. Simple, fair, and the default we'd suggest for most ten-person firms.
- Two tiers. Comprehensive low-excess cover for directors and senior staff; core-plus-outpatient for everyone else. Common where directors previously held personal policies.
- Base plus buy-up. The company funds core cover for all; employees can pay to upgrade themselves or add partners and children (indicatively £40–£90 per family per month) via payroll deduction.
- Cash plan layer. Some firms add a health cash plan for everyday dental, optical and physio costs alongside the insurance — a few pounds per head.
Whichever structure you pick, keep the criteria written down and objective — it keeps both the tax position and the team dynamics clean. For the wider context on group schemes, see the small business health insurance guide.
Frequently asked questions
How much does health insurance cost for a 10-person team?
Typically £6,800–£9,000 a year — £57–£75 per employee per month — for mid-range cover on a mixed-age team. A young team can come in at £4,500–£6,000, while an older, director-heavy ten can exceed £12,000. IPT at 12% is included in quoted premiums.
How long does it take to set up health insurance for 10 employees?
Days to two weeks. Ten-person schemes use moratorium underwriting, so there are no medical questionnaires — the insurer just needs names, dates of birth and postcodes. Once you've compared quotes and signed, cover can start from the next date you choose, with claims possible from day one.
What underwriting does a 10-employee scheme get?
Almost always a moratorium: conditions from the past five years are excluded initially, then generally covered again after two trouble-free years. Medical history disregarded terms — pre-existing conditions covered from day one — usually need around 15–20 employees, so it's a milestone to note as you grow.
Can I give directors better cover than staff in a 10-person scheme?
Yes. Tiered schemes are fine at ten people provided tiers follow objective criteria — seniority band or role, not hand-picked names. A common setup is comprehensive cover for directors and core-plus-outpatient for the wider team, or a company-paid base level with employee-funded upgrades.
Do all 10 employees have to join the company scheme?
No — employees can opt out, though uptake is usually near-total when the employer pays. Some insurers set minimum participation for their best rates, so check before assuming several people can decline. You can also define eligibility objectively, such as everyone past probation, rather than covering all ten.
Is health insurance for a 10-person team tax deductible?
Generally yes — premiums are normally an allowable expense for corporation tax, so an £8,000 annual spend costs around £6,000 net at the 25% rate. Employees pay benefit-in-kind tax on their cover and the company pays Class 1A NIC at 15%. Not tax advice — confirm with your accountant.
What does a typical 10-employee policy cover?
Inpatient and day-patient treatment (surgery, hospital care, cancer treatment), a capped or full outpatient allowance for consultations, diagnostics and scans, and mental health support including talking therapies. Usual exclusions: chronic condition management, and pre-existing conditions until moratorium terms clear.
Will our 10-person scheme's premium rise every year?
Expect movement at each annual renewal — with your team's ages, insurer medical inflation and your claims experience all feeding in. Rises of several percent a year are normal; a heavy claims year can push more. Re-comparing the market every couple of years keeps renewal pricing honest.
Can employees add family members to a 10-person company scheme?
Usually yes — partners and children can typically be added for around £40–£90 per family per month. Most ten-person firms let employees fund dependants through payroll deduction, keeping the company's cost fixed at the employee-only premium while staff get group-rate family cover.
Is 10 employees enough to get a good deal on group health insurance?
Yes — ten is the SME sweet spot. You're comfortably above every insurer's two-employee minimum, group pricing runs 10–30% below individual cover, and every major insurer competes for this size of scheme, so like-for-like comparison genuinely moves the price.