Employees who decide to join your company do so in part because of the benefits package you offer. Unfortunately, if someone on your team makes an error that negatively impacts the benefits of an employee, you open yourself up to costly litigation. It’s important to plan ahead so you are prepared for issues when they arise.
Employee Benefits Liability Insurance
EBL coverage protects your company from litigation resulting from errors and omissions in the administration of the benefits package. Examples include:
- Describing the benefits and rules to employees – If the human resources or benefits manager gives wrong information regarding who is covered under the policy, the employee can sue your company.
- Implementing and maintaining records – Mistakes in filing information with the insurance company or loss of internal records can result in litigation.
- Enrolling employees and eligible families in benefit plans – Failure to include all eligible beneficiaries or family members in benefit plans can be devastating.
Make sure the EBL insurance you choose covers the benefits provided by your company. Some plans offer blanket coverage that might not include specific benefits you give your employees. The typical coverage includes protection for various insurance plans, pension and profit-sharing plans, and benefits like worker’s compensation.
Talk with your insurance agent to find the best coverage so that you are protected in any circumstance.