If You Offer Employee Benefits You Need This Coverage
Employee benefits liability insurance protects a business from errors and omissions claims in administering a benefits program. This coverage is typically an endorsement added to your general liability policy.
What Does This Insurance Cover?
This type of insurance protects your business when mistakes occur in the management of your compensation program. It covers problems including:
- Enrollment issues such as delays in the process or failure to enroll, maintain or terminate employee coverage
- Plan mistakesin the amount or type of insurance an employee should receive, resulting in out-of-pocket medical expenses
- Program omissionsthat occur when an employer fails to outline a benefits package adequately for an employee
- Insufficient information provided to employees regarding eligibility resulting in misunderstanding the available perks
- Records handling mistakes causing costly errors or lack of coverage
- Misclassificationof employees as full or part-time workers
Do You Need Employee Benefits Liability Coverage?
General liability policies do not cover financial injuries or clerical errors. If you offer a compensation package to your staff, you likely need this type of insurance to protect you from costly mistakes. Administering these perks involves many duties, such as enrolling members, explaining benefits to employees, adding beneficiaries and maintaining accurate records. Even small errors may result in expensive consequences.
Providing extras to your employees helps your company in many ways, but you must effectively manage the program to avoid expensive blunders. Errors in the process may result in legal claims against your company. Protect your business from financial loss with employee benefits liability coverage.