Most employers offer benefits to their employees. Most employees expect benefits. What happens if errors are made during the administration of benefits? An Employee Benefits Liability insurance policy or EBL policy might be the answer.
Protections Offered With EBL Policies
Employee Benefits Liability coverage is a type of coverage that protects against errors and omissions during the administration of benefits programs.
Sometimes enrollment errors occur or an employee’s coverage may be accidentally canceled. If the employee has to pay out of pocket for benefits that he or she should have received, then you can count on the liability coverage to handle that. Any errors in recordkeeping or bad advice can lead to lawsuits.
Types of Benefit Programs Covered
When customizing your EBL policy, your policy must cover the benefits that you offer. Some of the common benefits covered by an EBL policy include:
- Life insurance
- Profit-sharing plans
- Pension plans
- Disability benefits
- Employee stock benefits
- Health insurance
- Dental insurance
- Workers’ compensation
As with any type of insurance program, there are exclusions and limits. Make sure that you understand the coverages offered, your benefits and the exclusions of your policy.
Even if you do your best to avoid errors, they can still happen. If you offer benefits to your employees, you have to be prepared. When it comes to risks, your best safety net is insurance coverage.