Jelf Employee Benefits is advising the Federation of Small Businesses on PMI options following a new three-year deal.
Two hundred thousand member companies will now have access to Jelf's employee benefits services.
According to an FSB report, the average cost of all sickness absence over a 12-month period is £1,482 but 9% of FSB members stated it had cost their firm more than £5000 over the same period.
Jason Britton, executive director at Jelf Employee Benefits, said: "We understand that staff absence is a particular headache for small businesses. However, the cost of providing private healthcare to help employees quickly return to work can be prohibitive.
"Owing to the size of their membership, Jelf Employee Benefits has on behalf of the FSB have been able to negotiate a package that would normally only be available to a larger Plc with a much larger workforce."
Jelf Employee Benefits will also adopt the trading style of FSB Health & Wellbeing.
Kevin Stephenson at the FSB said: "Not only will members make cost savings but they can rest assured that what they will be buying is appropriate for them and their business.
"Our members already spend enough time getting to grips with complicated legislation and red tape, so we wanted to ensure that this offering was jargon free, simple to understand and of real benefit to small businesses."
