Being an employer assumes a high level of responsibility for the individuals within your organization. Keeping up with the benefits you provide, and the employees you provide them to can be an arduous and never-ending challenge. Should one of your employees incur a loss due to an omission in the design or execution of your benefits program, you, the employer, could be held responsible. Employee Benefits Liability Insurance covers unintended errors and gaps in the administration of employee benefits.

 

Suppose a new employee comes on board with the expectation that they have an active health insurance plan, but due to an error, they are never added to the policy. They have an incident and incur charges that the insurance carrier refuses to pay. The employer could very likely be held financially responsible. This policy steps in to cover the employer’s loss, paying the benefits that would have been covered by the health plan, but for the employer’s error.

 

Employee Benefits Liability Insurance can apply to a wide range of employee benefits, including health, life, and disability insurance; retirement plans; and other benefits offered through incentives administered by the employer.