Minimum number of employees for group health insurance

Founders & directors

Founders and working directors are counted as members and can be covered under the same group plan — which is what lets a 3-person startup meet the minimum.

Full-time employees

Permanent, full-time staff are the core of any group and always count towards the group size.

Contract, gig & freelance staff

Depending on the plan, contract workers, gig workers, interns and freelancers can be included, broadening who counts towards the group.

Dependents

Spouses, children and parents can be added as dependents, but the minimum group size is measured on employees/members, not their dependents.

Risk pooling

Insurance works by spreading risk across many lives. With too few people, one large claim can outweigh the premiums collected, so insurers set a floor to keep the pool viable.

Administrative cost

Underwriting and servicing a policy carries fixed cost. Traditional insurers set a 20-member minimum so that cost is spread across enough lives to be worthwhile.

How Onsurity gets to 3

Onsurity’s membership model, technology-driven onboarding and insurer partnerships pool risk differently, which is how it can offer group cover to teams as small as 3 employees where a direct insurer would decline.

Can a company with 3 employees get group health insurance?

Yes. While most insurers require 20 or more members, Onsurity covers teams from just 3 employees, with founders counted towards that minimum. This makes group health insurance accessible to startups and small businesses.

Do founders and directors count towards the minimum?

Yes. Founders and working directors are counted as members of the group and can be covered alongside employees. This is often what lets a very small team reach the minimum group size.

Why do traditional insurers ask for 20 members?

A larger group spreads claim risk across more lives and spreads the fixed cost of underwriting and servicing the policy. Below a threshold, a single large claim can destabilise the pool, so insurers set a minimum — commonly 20 members.

Are dependents counted towards the minimum group size?

No. The minimum is measured on employees or members of the group, not their dependents. You can still add dependents such as a spouse, children or parents to the cover once the group qualifies.

What if my team grows past the minimum during the year?

You simply add the new joiners. With Onsurity, mid-year additions are self-serve in the TeamSure dashboard, so new employees (and eligible dependents such as a newborn or new spouse) can be onboarded without restarting the policy.

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