As a business owner, if you wish to give your employees benefits, which may include health insurance, life insurance, retirement benefits, disability or other benefits that are held on behalf of your employees for future distribution, you have a fiduciary responsibility regarding protecting them. There is the potential of severe litigation risk if something goes wrong and the funding to pay for the promised benefits is not available to meet the obligations when the time comes to pay them.
To manage this risk, employers use employee benefits insurance that is also called employees benefits liability insurance. Consult with your agent at Saucon Insurance Agency, serving Bethlehem, PA, and the surrounding area, to talk about the protection offered by this type of insurance.
What is employee benefits liability insurance?
This is a type of errors and omission (E&O) insurance that protects a business owner against certain mistakes made by the administrator of the employee benefits program. It is prudent and required by law in some cases, to use a third-party administrator to protect the funds held in an employee benefits program. It is equally wise to insure against any mistakes that might be made by the fund’s administrator, which might create a liability for the business owner.
For example, if, employee benefits liability coverage is in place to protect a health insurance plan, and a qualified beneficiary of the plan is left out of the coverage accidentally or by a mistake made by the plan administrator, then, the protection might help pay the health plan benefits, which would otherwise have been covered by the health care policy.
It is considered by most business owners to be too risky for a business not to carry employee benefits liability coverage. With this type of insurance coverage, business owners enjoy the confidence of not having to worry about certain mistakes that might be made by others. Contact your agent at Saucon Insurance Agency in Bethlehem, PA to conduct an insurance review and get a quote for employee benefits liability coverage.