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Archive for June, 2014

Employee Benefits Liability Coverage

Wednesday, June 4th, 2014

Employee benefits liability coverage is just what it sounds like: It covers the company against errors or omissions which were made about an employee’s benefit plans.

This kind of coverage is usually an endorsement on another policy such as the commercial general liability policy, but it can be a stand-along policy .

Most claims revolve around clerical errors wherein the employee is not added, added to the wrong benefits, or deleted from coverages. Errors which happen in advice to an employee about a particular benefit or mistakes in calculating the amounts of contributions of the employer or employee are also covered by employee benefits liability coverage.

Such errors are usually in the Human Resources Department, though they can also come from record-keepers, accountants, and trustees.

Here are a few scenarios:

A new employee chooses her benefits in the group medical plan, but the paperwork gets lost at some point after she has finished it. No one notices that it became lost, and there is nothing to trigger an alarm that such a thing happened.

Once the initial enrollment period has passed, the employee is stuck with no health coverage until next open enrollment.

Of course, this in itself is actionable, but if the employee has a chronic illness or has an accident, this becomes crucial, and the company will have to come up with a way to settle the problem.

Employee benefits liability insurance is among the least expensive kinds of coverage, particularly if it is an endorsement. It should, however, be part of your portfolio risk management strategy. Be sure to bring this issue up with your licensed insurance professional.

Employee Practices Liability Coverage

Monday, June 2nd, 2014

Statistics suggest that three out of five companies will be sued by an employee or former employee — or even someone who interviewed but never became an employee — at some time. That would suggest that anyone who has a business should consider that it is not out of the question that they could be a target.

Employment practices liability is a newcomer to the insurance coverage world. It provides the employer, directors, officers, and business protection against claims which are made by employees, potential employees, or former employees.

Such claims include wrongful termination, sexual harassment, invasion of privacy, breach of contract, emotional distress, false imprisonment, and wage and hour law violations. It also covers discrimination, whether racial, sex, age, disability, or any other unlawful discrimination, and other employment-related accusations or law suits.

It might be something you or your managers or supervisors are accused of doing or saying, or it may be over an off-color joke someone told in the break room. Or it might be something that a disgruntled employee has exaggerated. Any

As a business owner, you will want to have employment practices liability coverage before you hire your first employee.

All companies are vulnerable, whether small or huge, and even a groundless suit can cause major damage in financial resources, and time if the company is not covered.

If you plan to have have one single employee or 5,000, you will want to look into employment practices liability insurance. Be sure to talk to your licensed insurance professional about what levels of EPL you should have.