Does Your Company Need Employee Benefits Liability Insurance?
Your company most likely offers health insurance benefits to its employees. A good benefits package can attract good workers, so it’s to your advantage to extend good coverage. You may not have considered the fact that errors or omissions in implementing those benefits can cost your company a great deal, however.
What is Employee Benefits Liability Insurance?
EBL insurance is designed to protect your business in the event of improperly administered benefits packages. Let’s look at some examples where EBL coverages are critically important:
- Your company has employed a new maintenance worker. He has properly filled out all his insurance forms, but the HR administrator has either forgotten to submit his forms to the insurance company or has inadvertently deleted the electronic records. One day, the maintenance employee is injured on the job and requires medical attention. When he arrives at the hospital, he is told he doesn’t have health insurance.
- The benefits manager tells an employee that someone is covered under their health insurance plan, but in reality the person is not eligible for the company benefits. The uncovered person discovers this when arriving at the hospital for medical treatment.
In both of these cases, your company will undoubtedly be sued for reimbursement of all costs. If you don’t have EBL coverage, you will likely be responsible for all expenses, including legal fees.
Protect your company from liability by researching EBL insurance as soon as possible.