It’s no secret, given today’s driver shortage, companies are competing to attract and retain the best and most talented drivers. Often, this advantage comes in the form of financial benefits, including employee benefit programs. Employee benefit programs are a popular way to compete for new employees and have been shown to improve overall employee morale and productivity.
That sounds great, but providing an employee benefit program is not without risk. As an employer you face legal and regulatory requirements, as well as, the financial consequences from damages resulting from errors in administering these programs.
There is insurance coverage that will protect your business in the event a claim is filed due to these errors and omissions. Employee Benefits Liability, which is often referred to as Employee Benefits E&O, covers claims arising out of the administration of employee benefit plans.
An example of how Employee Benefits Liability comes into play would be as follows:
You hire a new employee who is eligible for medical, dental and life insurance benefits. The employee requests to add coverage for his spouse and son. The program administrator fails to get the employee’s family added as requested. The employee’s spouse is diagnosed with cancer and has over $400,000 in uncovered medical bills as a result of the error. As the employer you can be found liable for the uncovered medical bills.
Employee Benefits Liability can be covered a few different ways; as an endorsement to your General Liability policy, written as a stand-alone policy, or by a Fiduciary Liability policy. Contact your agent to design a program that is right for your business.