If your company provides its employees with benefits packages that include health insurance, life insurance or disability pay, you may want to consider protecting yourself with employment benefits liability insurance. This type of policy protects an employer in the event that a processing error or a failure to advise employees is made in the administration of employee benefit programs. Employment benefits coverage typically does not cover harassment or discrimination suits, even if they are related to the benefits program.
Even small mistakes can have a large impact on the benefits offered to employees. One missed keystroke could make the difference between dependent receiving health coverage or not. The mistake could go unnoticed for months, until a medical problem surfaces. Another common mistake is failing to provide terminated employees with the required COBRA information. It only takes one disgruntled employee to sue your company and cause financial devastation.
Often times, a clause for employment benefits liability can be added to the general liability portion of your business insurance policy. It is typically very affordable and doesn’t add much to your overall premium. Most employers find that it is money well spent in today’s litigious environment.
For more information on employment benefits liability insurance and how it can benefit your company, visit the World Wide Specialty Program website.