Hassle-Free Health Coverage: Employee Group

An employee group policy may be issued to an employer (or to the trustee of a fund established by an employer) where insurance is secured for the benefit of the employees, or for persons other than the employer. The employer is the policyowner, and establishes the eligible class of employees to be covered under the group policy.

Usually, this classification will include all full-time employees (including the employer). Further, the classification can also specify full-time, salaried, nonunion employees. By classifying the employee group in this manner, the employer is legally able to exclude certain groups of employees (part-time, union, etc.) from the eligible class of covered employees. The eligible class of employees may also include retired employees.