To create and maintain a successful business, well compensated employees are essential. Besides the basic pay offered by most businesses, employee benefits are often offered to attract, retain and motivate top talent in your chosen line of business.
They help increase worker productivity. These benefits include but not limited to; sick leave, housing allowance, transport allowance, retirement benefits and vacation (paid and non-paid).
Why Employee Benefits Plans Liability Insurance?
However, problems arise during the management and disbursement of these benefits to employees. These problems, which may lead to claims, may include negligence, omissions, errors, and miscommunication during the management of the benefits scheme.
As an employer, this type of insurance helps cover your business against any claims and your benefits employees. It is designed to insure against lawsuits regarding the mismanagement of employee benefits. Claims filed by employees that relate directly to employee benefits plan management will be covered by the insurance policy which is specified in this type of insurance plan.
The management of the benefits plan (or lack thereof) encompasses the following areas; counseling services in relation to benefits, employee record handling, interpretation of benefits and the enrollment, termination or cancellation of employee benefits.
More about an Employee Benefits Liability policy.
As a claims-made policy, this policy only covers only the claims made during the coverage period. Areas of employee benefits covered by this policy include any paid holidays, worker’s compensation, retirement plans, pensions and health insurance. Although some benefits such as health insurance are required by law, this policy only insures those claims made against the management of employee benefits agreed to contractually between the employer and the employee. It is essential before acquiring this policy to ensure that it covers the benefits your business offers. The coverage of this policy includes two separate limits. These are; Each employee limit which specifies the maximum amount the insurer will pay for a single employee and the aggregate limit which specifies the most the insurer will pay for all errors and omissions.