Paying for an HR Mistake

Federal and state regulations have some influence over the type of benefits a company may offer an employee, but there is an ethical concern that propels businesses towards taking care of their own. However, even a generous benefits plan holds the potential for legal concerns, should an employee claim a company failed in their delivery of services. In these situations, employee benefit liability insurance can be a fail-safe against financial chaos.

Common legal claims following the administration of employee benefits are in the area of errors and omissions. A claim filed under this guise could include a new employee who was denied insurance payments for a medical claim because the human resource office had failed to submit or activate the employee on the plan. Even though it was an accidental error, benefit disability insurance would be the coverage that pays for the benefits as a result of the omission.

Employee benefit liability insurance can apply to claims or incidents involving health or disability insurance, life insurance, retirement plans or services offered as a benefit by an employer. It covers claims where files and records are involved, initial descriptions and indications of coverage are questioned and the enrollment, maintenance and termination of employee benefits to either the employee, spouse, family or beneficiary.

With so much at stake if your company inadvertently fails in the area of employee benefits, a tailored liability coverage policy can be your company’s reinforcement.