Offering employee benefits can make it easier for your business to attract and retain talent. Many workers look for companies that offer a robust package with good health care, vision, dental, and life and disability insurance, along with retirement benefits.
The problem is, managing a benefits package can get complicated, and mistakes do happen. And, an error made in fringe benefits administration can be catastrophic for your business. Simply failing to explain all the benefits to each employee or making a mistake when enrolling a new hire to your company’s plan can leave your business vulnerable to a lawsuit. If an error or omission your company made leads to an employee not having coverage, they can sue you for the amount the insurer would have covered.
In some situations, for example, when an employee becomes disabled or has surgery, the costs your business could be held liable for are tremendous. What would your business do if you had to pay thousands, or even tens of thousands in medical bills for an employee who didn’t have health care because your administration staff forgot to enroll them? How would you handle the legal costs of a lawsuit?
Fortunately, there is a solution. With liability coverage for employee benefits, you can protect your business from the potential losses a benefits administration error or omission could cause.
While general business insurance is important for managing risk, it’s only the beginning of serious risk reduction. A standard general liability policy won’t cover administrative errors that can lead to a lawsuit. What you can do is purchase employee benefits liability coverage and add it to your general liability policy.
The risk experts at villaNOVA Insurance Partners can help you determine how much coverage is enough for your business. We’ll talk to you about choosing the right amount based on the size of your business, how many employees you have, and the type of benefits you offer.
Employee benefits liability, also known as EBL, will provide coverage for damages your business is legally required to pay because of any error, omission, or act concerning benefits administration. So, if your staff fills out the paperwork incorrectly, forgets to enroll a new employee, or gives an employee the wrong information when describing benefits, your business is protected from financial loss.
EBL can include all types of medical insurance, including dental and accident insurance, as well as retirement plans, unemployment benefits, maternity leave, and tuition assistance. Make sure the EBL coverage you purchase specifically covers the benefits your organization offers.
Don’t let your business stumble into a financial disaster because you don’t have the right liability coverage. Our team of insurance experts can help your business with all aspects of business risk management, including insurance for employee benefits, business management, legal services, and more.
Contact us today to find out how a smarter approach to business risk can help. Contact us for questions or to set up a consultation.