How To Select the Best Employment Benefits Liability Coverage

Employment Benefits Liability Coverage

Business owners understand the importance of providing an attractive benefits package to their employees. What they may not realize, however, is that without proper liability coverage, employers open themselves up to potential lawsuits when an employee feels that a portion of the benefits package was improperly managed or presented.

Employee Benefits Liability Coverage

EBL coverage protects employers against benefits claims made by employees. Lawsuits can result from such things as:

  • Mistakes made while implementing or explaining medical, dental and life insurance policies
  • Improper management of disability benefits, workers compensation packages or unemployment benefits
  • Unfulfilled promises regarding pensions or profit sharing
  • Misunderstandings pertaining to vacation time and tuition reimbursement

If a claim is filed, EBL insurance covers the legal fees and any settlement costs. Most policies only cover claims that are filed during the period described in the policy. Once the policy expires, coverage ends as well. To help business owners through a gap in insurance, an ERP extension can be purchased. Extensions can last up to five years, depending on the policy.

Since no two businesses have the same needs, it is critical to discuss your potential risks and concerns with your insurance agent to ensure you get the best insurance package to protect your company.

Reduce your employee benefit liability risks with a comprehensive EBL package.

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