Do you offer employee benefits like health, vision, or dental insurance to your employees? These benefits must be managed properly. Mistakes made in administering benefits can generate lawsuits against your company. You can protect your business against such suits by purchasing Employee Benefits Liability Coverage.
Administrators must explain benefits to employees, enroll workers in plans, add or remove beneficiaries, and keep accurate records. Mistakes are inevitable and small errors can have significant consequences.
For example, suppose you hire a new employee and the employee completes all the necessary paperwork to enroll in the health plan. However, the administrator makes a clerical error that prevents the employee from being enrolled. Six months later, the employee is hospitalized with a serious illness and is shocked to discover they have no health insurance. When medical bills pile up, the employee files a lawsuit demanding reimbursement of their costs.
These types of claims are not covered under commercial general liability policies. Clerical errors generally cause financial injury rather than bodily injury or property damage. Financial injuries are not typically covered by general liability policies.
The need for Employees Benefits Liability Coverage depends on factors such as the number of employees and types of benefits offered. Give Insurance Centers, Inc. a call to see if Employee Benefits Liability Coverage would be right for you.