Why Not Auto or Life?

[Guest David Tayman]

While most businesses offer employees some combination of health and/or life insurance benefits, virtually none offer employees auto, home, or other personal insurance benefits.

Is there any reason why an employer would not be allowed to offer employees auto or home insurance as part of a benefits package?

Is there any reason why an employer would not want to offer auto or home insurance as part of a benefits package?

[KIP KRAUS]

David:

I know of no reason from a legal or otherwise standpoint that an employer cannot offer auto and homeowners insurance to employees. However, I can tell you my reasons for not offering them.

1. Other than the convenience of payroll deduction for payments there doesn’t seem to be any other benefit to doing it.

2. I don’t want to put the company in the position of recommending any particular insurer for employees to by such insurance.

3. The first time an employee finds out they can get this insurance cheaper from some other insurer it makes it look as though the employer has something to gain from the insurer.

4. Generally, I don’t want to give an insurance salesman access to by employees so they can try to sell them other personal lines insurance.

5. There are 100s of insurers out there that employees can solicit quotes from.