Most employees expect benefits. From healthcare plans to pension plans or retirement accounts, the benefits you offer your employees can be a lure for loyal, hardworking employees. When it comes to administrating the benefits, however, those in charge have a huge responsibility to the employee. If someone makes an error or if someone commits fraud, it can have a devastating effect on your company.
Employee Benefits Liability Can Help
If an employee files a claim against your company due to errors or negligence regarding the administration of his or her benefits plan, employee benefits liability insurance can cover the claim. Not only can it cover the legal fees, but it also covers the cost of a settlement.
Employee Benefits Claims Are Common
When it comes to knowing what insurance options are critical to your business, you need to be able to imagine the risks. Examples of claims include:
- An employee dies but the life insurance plan doesn’t pay out
- An employee has a health emergency but the health insurance lapsed
- An employee wasn’t added to the retirement plan
Most of the time, these events occur because of errors, but the employee may sue your company for negligence.
The employee benefits claim examples can devastate your company if you don’t have employment benefits liability coverage.