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@Mirius
Well the employer could insure, I'm not convinced that it would count as a non-taxable benefit mind if they pass the cost on to you. And insurance still doesn't really cover people who leave the company, take the bike and leave the loan unpaid. In theory it should be offset against any pay owed, in practice it doesn't seem to, and again this is all additional admin.
By the way, you are claiming your free breakfasts aren't you?