One way employers attract the top talent in their fields is by offering employee benefits. While health insurance is the most desired of all employee benefits, companies often offer other benefits as well. With all of the benefits that can be offered, you may be wondering what is employee benefits liability (EBL) coverage?
The employee benefits liability definition includes the liability of an employer for any mistakes or omissions that occur during the administration of an employee benefit program. This can include failure to notify employees of the benefits program or advise them on how to make a decision.
EBL insurance provides a way to protect employers against the mistakes or omissions that occur as previously mentioned. While it’s important to offer employee benefits to help attract and maintain quality staff, it’s also important to keep yourself protected from any mistakes that can happen as a result.
What Does EBL Cover?
Generally speaking, EBL insurance covers the damages if the insured is legally required to pay as a result of errors or omissions made during “covered acts.” As found on www.wwspi.com, covered acts may include the following:
- Explaining the benefit plans to everyone. This includes employees as well as other eligible family members and beneficiaries.
- Maintaining employee benefit files and records
- Enrollment, maintenance, and termination of eligible recipients from the benefit plans
If you actively offer benefits for your employees, make sure that you are covered in the event of a claim. If you wait until it’s too late, your company could be liable for thousands of dollars in damages.