What type of insurance contract is written for a company for its employees?

Group coverage is a type of insurance contract designed specifically for a group of individuals, such as employees of a company. This form of insurance typically offers a single policy that covers all members of the group under a single contract, which can make it more cost-effective compared to individual policies. The risk is spread over a larger pool, leading to lower premiums for each insured member.

This type of coverage is beneficial for both employers and employees since it often includes essential health benefits and may cover dependent family members as well, depending on the specifics of the plan. In contrast, individual coverage refers to policies taken out by individuals for themselves, family coverage pertains to policies meant to cover several family members, and short-term coverage typically provides temporary insurance and does not cater to groups in an employment context. Thus, the nature of group coverage as a collective agreement among employees underlines its role as the correct answer.