What Employee Benefits Liability Coverage Should Include
December 10, 2021
Offering comprehensive employee benefits packages is one of the best ways to attract top talent in your industry. Many business owners don’t realize that their benefits programs can leave them open to lawsuits and liability. When you work with a VillaNOVA insurance broker, they’ll perform a risk analysis for your company. We’re committed to protecting your company from liability in your property, vehicles, workers’ compensation, and your employee benefits.
VillaNOVA takes the time to explain the insurance products that provide your organization protection against the unexpected. In this blog, you’ll learn what employee benefits liability coverage should include and why it’s essential for your company.
Isn’t general liability coverage enough?
There is no single strategy for building insurance coverage for a company. As much as every industry is different, so is every business. One of the most critical insurance products for every enterprise is general liability coverage. While it would certainly be simpler if it covered all liabilities for your organization, the scope of its protection is limited.
General liability prevents a company from being sued due to injury and damage caused by their products, services, and operations. It doesn’t cover employee injuries, auto accidents, punitive damages, or human errors and mistakes.
What incidents does employee benefits liability cover?
At its essence, employee benefits liability coverage protects against human error. Regardless of the size of your company, your benefits administrators have demanding responsibilities. They must ensure your employees and their dependents and beneficiaries are correctly enrolled in all the benefits you offer. Because of the complexities of paperwork and rolling deadlines, there are plenty of opportunities for human error to occur.
Any mistake, from losing track of paperwork to forgetting to submit changes to a plan before a deadline, even minor human errors can lead to expensive consequences.
Employee benefits liability coverage safeguards both your company and your employees against being sued. For example, a benefits administrator loses track of healthcare enrollment paperwork for a new employee. That individual then discovers they don’t have health coverage after being hospitalized. They could sue their company and name the benefits administrator. While mistakes are part of being human, even small ones can have grave consequences for your employees and company if you remain exposed to liability.
Employee benefits liability coverage should include any benefits which employees may claim.
Employee benefits liability (EBL) covers financial damages, making it a much different insurance product from others you may already have. When an insurance broker performs risk analysis for your company, it will include the financial liabilities you face due to your employee benefits package.
By combining competitive benefits packages with liability coverage, you’re able to attract the top talent in your field without exposing your company to excessive liability. Some of the covered incidents of human error that EBL covers include:
Mistakes in describing who a benefits package covers
Errors in maintaining and updating electronic and paper files
Enrollment, maintenance, and termination of employees in benefits packages
Protect your company and employees with an EBL coverage plan, so minor mistakes stay that way.
VillaNOVA Insurance Partners helps clients understand how their business benefits from employee benefits liability coverage.
The team at VillaNOVA understands the demands of running a business. That’s why we’re committed to providing clear guidance to our clients in getting the coverage they need to protect their enterprise.
Our suite of services includes review, analysis, and management of your current policies, programs, contracts, and claims. We bring a personalized approach to not only offer expert guidance but explain why our recommendations are ideal for your organization. As insurance brokers and consultants, our goal isn’t to sell insurance products but find the best coverage to protect our clients.