In order for your business to operate efficiently, you need a strong group of employees. You most likely retain and attract new workers by offering them benefits such as health insurance. While these benefits are essential to have, they can lead to errors in business administration, which is why you need employee benefits liability insurance.
What Does Employee Benefits Liability Insurance Cover?
This type of staff insurance covers certain errors and omissions made by your business, which include:
- Inaccurately describing benefits plans and eligibility rules to employees
- Failing to maintain files and records related to employee benefits
- Mishandling the enrollment and termination of employees
How Does Your Policy Work?
Coverage is usually provided to businesses on a claims-made basis, but some insurance companies do offer occurrence coverage. Your policy will only cover your business for damages that resulted from an error made by your administration involving employee benefits. Small clerical errors are not covered by your policy.
Who Needs Employee Benefits Liability Insurance?
Employee benefits liability insurance is especially helpful to businesses the employ a large number of workers. Small businesses that have few employees or offer few benefits can still benefit from having a policy, but it is not essential for them to have one. Employee benefits liability insurance is just one form of staff insurance. Professional liability, general liability, and workers’ compensation insurance are also available to you. Contact an insurance agency if you want to secure coverage for your business.