Small mistakes can lead to major financial consequences.
Your business takes good care of its employees and offers and pays for a great health plan and other benefits. While these benefits can help your company compete for qualified workers and keep your current employees happy, they must be administered properly. Small clerical errors can have major consequences. What happens if due to a clerical error by human resources a new employee is not actually enrolled in health insurance when eligible and the mistake is not discovered until months later when the employee is in a serious car accident?
One small mistake or even accidentally overlooking a small piece of paperwork, can send a business into financial ruin. Errors in administration can lead to lawsuits against HR employees, your firm, or both. To insure against such claims businesses may purchase Employee Benefits Liability (EBL) coverage. EBL coverage is often provided via an endorsement attached to a general liability policy.
Having the proper insurance coverage can give you peace of mind and assure that your business is prepared if you fall prey to a seemingly innocent mistake. Employee Benefits Liability Insurance is a type of professional liability insurance which covers an insured in the event of a claim which arise out of errors and/or omissions in the administration of a benefit plan. This may include errors and omissions such as failing to advise an employee of a benefit program, failure to enroll, terminate, or cancel an employee in the plan, and administering improper advice in regards to the benefits. Employee benefits programs can include group life insurance, group health insurance, profit sharing plans, employee stock plans, workers’ compensation and unemployment insurance.
At RSS, our goal and intent is to make sure we inform our customers of all possible risk exposures, and when needed assist them in protecting themselves beyond their basic liability policies through proper insurance coverages. In the litigious environment that today’s businesses now operate, you need to make sure that you have protected yourself properly and entirely. Please call our office today if we can assist you in reviewing your risk exposure and to verify that you have the correct policies in place.