Consequences of not purchasing sick leave insurance
Taking out sick leave insurance is not required by law. As a business owner, you decide which risks you want to insure and which you do not. One of those risks is absenteeism of sick employees. The more employees you have, the greater the financial risks. Are you still hesitating about taking out sick leave insurance for your organization? Then it is a good idea to take a look at the consequences of not taking out sick leave insurance. In this article on Alpina.nl we have therefore listed a number of possible consequences for you.
Possible consequence 1: You cannot pay the absenteeism costs
The costs of absenteeism can be high for a sick employee. On average, a sick employee costs €250 to €300 per day. The biggest cost in sick leave is the continued payment of wages. In the Netherlands, an employer is obliged to continue paying the wages of a sick employee for two years. This should be at least 70& of the gross salary. Many CLA's stipulate that you have to continue to pay 100% of the wages during the first year. However, this may differ per CLA. In addition to the obligation to continue payment of wages, you will also have to deal with other costs, such as follow-up on absenteeism and reintegration. You may also suffer loss of turnover or production and there may be costs for hiring replacement staff. All in all, the costs can mount up, especially if your employee has been ill for a long time or if there are several long-term ill employees. A sick leave insurance covers this financial risk.
Possible consequence 2: Bankruptcy
The costs for a sick employee can therefore mount up considerably. Especially as a small organisation, it is not always easy to absorb these costs. Certainly not if several employees become ill for a long time. Without sick leave insurance to cover the costs, you therefore run the risk of having to file for bankruptcy at some point.
To take out sick leave insurance or not?
Are you still hesitating about taking out sick leave insurance? Then take a good look at the financial capacity of your company. If an employee is ill for a long time, this brings along high costs. Suppose that there are several employees who are sick for a long time, can you absorb the absence costs yourself? Include in your calculation not only the salary costs, but also the costs of absenteeism management, reintegration and any replacement staff. The premium of a sick leave insurance may seem high, but the costs of a sick employee are often much higher. If your organisation is unable or unwilling to cover the costs of one or more sick employees, you may want to consider sick leave insurance.
Request a no-obligation sick leave insurance quote at Alpina.nl
Before you take out sick leave insurance, you naturally want to know how much the premium will be for your organization. At Alpina.nl you can request a quote without any obligation. For this we need some information about your company. In the quote you will find an overview of the various insurances. So you can easily compare the premium for sick leave insurance yourself. Did you know that the premium for sick leave insurance is reviewed every year? The insurer then looks to see if the company details have changed and if there have been personnel changes, changing the age structure of your staff, for example.
Do you have any questions about sick leave insurance? Then please do not hesitate to contact us! You can reach us Monday to Friday from 08.00 to 18.00 by phone at 0800 - 688 37 12. Of course, you can also send us a message via chat, WhatsApp or Messenger.
Request a quote for sick leave insurance now!
We can be reached via Chat, Whatsapp, phone or email
Please feel free to contact us if you would like to know more.
We are here Monday to Friday from 08:00 to 18:00.