Your Guide to Employee Benefits Insurance
If you’re like other companies, your firm offers employee benefits. A benefits package helps take care of your employees and helps attract new ones. Now, if you make any mistakes while administering these benefits, your employees may file a lawsuit against the firm. You can protect your company with employee benefits liability insurance.
Benefits administration isn’t easy. There are a lot of tasks to keep track of and records have to stay accurate. One of the most common errors is when a new employee will complete his or her benefits paperwork and then a person in human resources makes an error. This error prevents the employee from enrollment. Then, no one notices until there is a problem and the employee needs those benefits.
Unfortunately, many of these errors are not covered under general liability. Clerical errors don’t usually cause bodily injury or property damage. General liability does not cover financial injury. When it comes to administrative errors, it’s rare that there will be any property damage or bodily injury as a result. This is why general liability does not work for clerical errors with employee benefits.
If you don’t have employee benefits liability insurance, then you might end up on the receiving end of a bad lawsuit. Mistakes happen and it’s best to be prepared for it. Insurance protects you and your business against potential lawsuits.