Introduction
Starting a new HVAC contracting business is an exciting venture, but it comes with its own set of challenges, especially when it comes to managing employee benefits and health insurance. For shops in their first two years, finding the right balance between cost and coverage is crucial. As you build your team, offering competitive benefits can help attract and retain skilled workers. This guide explores several options for health insurance and group benefits tailored for new HVAC contractors.
Health Insurance & Group Benefits Options
Nexstar Network offers a comprehensive member-based business coaching and training network specifically for plumbing, HVAC, and electrical contractors. For new HVAC shops, Nexstar provides access to vetted group benefits, insurance, and vendor programs. While the membership dues are on the higher side at approximately $8,000 per year, the investment could be worthwhile for shops looking to gain industry-specific insights and resources. With a strong reputation and a 4.7 rating, Nexstar Network is a solid choice for those who value a community-driven approach and are willing to invest in their business development from the start.
2. Take Command Health (ICHRA)
Take Command Health specializes in HRA administration, offering a platform that helps small employers, including HVAC shops, reimburse employees tax-free for individual health insurance. Through their QSEHRA and ICHRA programs, new contractors can provide flexible health benefits without the burden of managing traditional group plans. The pricing is straightforward at $20 per employee per month, plus a $40 monthly platform fee, making it an affordable option for startups. With a 4.7 rating, Take Command Health is ideal for new businesses seeking a cost-effective and flexible benefits solution.
Gusto provides a payroll-integrated health benefits brokerage that allows small employers to shop, enroll, and administer a variety of benefits, including medical, dental, and vision, alongside payroll. For HVAC shops just starting out, Gusto's integration simplifies the management of benefits and payroll in one platform. The pricing is competitive at $6 per employee per month for the broker integration add-on, plus carrier premiums. With a 4.6 rating, Gusto is a practical choice for new contractors looking for a streamlined approach to benefits administration.
4. Rippling PEO
Rippling PEO offers a bundled solution that combines HR, IT, and finance software with access to enterprise-grade medical and ancillary benefits. This includes plans from major carriers like Aetna, Humana, and BCBS. For new HVAC businesses, Rippling's comprehensive platform can simplify the management of payroll, workers' comp, and device management. Pricing starts at $8 per employee per month for the base platform, with PEO bundles typically ranging from $50 to $120 per employee per month. With a 4.6 rating, Rippling is suitable for new shops that anticipate growth and need scalable solutions.
5. Justworks
Justworks is a certified Professional Employer Organization (PEO) that aggregates small employers to provide access to large-group medical, dental, and vision benefits. For new HVAC contractors, this means accessing high-quality benefits typically reserved for larger companies. Justworks' pricing starts at $59 per employee per month for the PEO Basic plan. With a 4.5 rating, Justworks is a viable option for startups looking to offer robust benefits without the complexity of managing them independently.
Conclusion
For new HVAC contractors, establishing a minimum viable setup for health insurance and group benefits is essential. Each of the options listed offers unique advantages tailored to startups. Whether you prioritize community support with Nexstar Network, flexible reimbursement with Take Command Health, streamlined integration with Gusto, comprehensive management with Rippling, or large-group benefits access with Justworks, there's a solution to fit your needs. As you navigate the early stages of your business, consider your budget, growth plans, and the level of support you require to make the best choice for your team.