Companies that offer employee benefits like health insurance or retirement plans tend to have more success with retaining good employees and attracting qualified new workers as the need arises. However, mismanagement in benefits can bring devastating lawsuits against your company. The information found at https://www.wwspi.com/
some of the more common employee benefits liability insurance claim examples. The best form of protection from these claims, besides extreme caution in administration, is purchasing an insurance package that addresses employee benefits liabilities (EBL).
Room for Error
Overseeing benefits administration is a complex task that can be prone to error and accident oversight. Mistakes are just about inevitable, with any problems in the following areas opening a potential lawsuit.
- Explanation of benefits to employees
- Enroll employees in the selected plan
- Add or remove plan beneficiary
- Maintain accurate and organized records
Clerical errors can leave employees with denied coverage in areas of accidents and health concerns, causing a financial strain when trying to meet medical obligations. Employees then file suit on the company for both financial reimbursement and related damages.
Claims and lawsuits that arise in these areas are excluded from coverage under general liability policies. The clerical errors are seen as causing financial injuries, rather than property damage or bodily harm. You can protect your company with EBL coverage
through an endorsement to your existing commercial general liability policy.