Employee benefits coverage may seem like a burdensome insurance requirement, especially for a nonprofit organization with limited resources or an up and coming small business. However, it’s an essential part of any employer’s insurance coverage.
What Doe Benefits Liability Coverage Do?
Employee benefits liability coverage is an important policy indorsement geared towards protecting your organization in the event of a legal claim related to employee benefits administration. In all the effort that you’ve put into securing benefits for your employees, you know that you and your team work hard to make sure that everything goes as planned. Nevertheless, administrative problems resulting from simple error or oversight can have dramatic consequences for individual employees and their families.
What Kind of Claims Can Occur?
According to Worldwide Specialty Programs, there are many different types of claims that can arise from mismanaging employee benefits. For example, if an HR administrator relays inaccurate information about a health insurance plan’s benefits, it could prevent an individual from making the right coverage elections. Moreover, providing misinformation could cause an employee to reasonably believe that their coverage is effective when in fact it is not; this could cause ab employee to incur significant medical bills without having insurance to pay for them. Ultimately, managing individuals’ health benefits is an enormous responsibility, and it is extremely important to safeguard your company’s benefits administration.