Final answer:
According to Maslow's hierarchy of needs theory, when employers provide health insurance, they are addressing their employees' safety and security needs, which are fundamental after physiological needs and essential for reaching higher levels of the pyramid like belongingness, esteem, and self-actualization.
Step-by-step explanation:
According to Maslow's hierarchy of needs theory, when an employer provides his employees health insurance, he is taking care of their safety and security needs. Health insurance caters to the necessary means to maintain one's health and protect against medical uncertainties, which is crucial for the sense of security. At the base of Maslow's pyramid are physiological needs, required for survival, such as food and water, followed by safety needs, which include financial security, health, and well-being.
Providing health insurance by an employer can be considered a part of establishing a safe working environment, which also gives employees the peace of mind to work without worrying about their medical needs. This is instrumental for workers to fulfill higher tiers in Maslow's pyramid, which include belongingness, esteem, and ultimately self-actualization.