Employee benefits liability insurance is simple. It provides coverage regarding errors or omissions. This coverage extends to the employer’s employee benefit program. Errors happen and it’s important, as a business, to have the proper protections in place. You need to expect that things will go wrong or that errors will take place. Here is what this type of coverage does for your company.
Employee Benefits Liability
Say that you fail to add your new employee to the medical insurance plan after the employee requests it. This may have been from simple forgetfulness. The problem is that later on, the health insurance company will deny the employee coverage if he or she makes a medical claim. Your employee was supposed to have health insurance, what do you do?
The employee benefits liability insurance pays the employee what the health insurance would have paid. This covers your error as the employer so that you don’t have to pay out of pocket for these expenses. Mistakes happen, it’s important that you are protected.
When it comes to insurance, there are a lot of different coverages that your company needs. Make sure that you stay protected with adequate coverage. This should extend to your employee benefits. While offering benefits is important, keep in mind the costly consequences if you make a mistake regarding benefits.