Since Gediman v. Anheuser Busch in 1962, employee benefits liability insurance has been available. The coverage options have grown and expanded through the years to address a variety of employee benefits claim examples.
Employee benefits liability insurance steps in when a past or current employee files a claim regarding the administration of the employee benefit plan. This type of errors and omission insurance protects those responsible for administrating the plan including partners, directors, officers, employees, and stockholders. The insurance often works in conjunction with fiduciary liability coverage.
Since employee benefits liability insurance typically covers retirement plans, group health and life plans, disability benefits and workers compensation, there are a variety of claims that can be filed. If an employee was supposed to be added to the retirement plan, but the employer failed to add them, the employee can file a claim for negligence. A life insurance plan doesn’t pay out upon the death of an employee because the employer-provided incorrect information could result in a claim.
Employee benefits claim examples can go on, but a good risk management plan can help reduce the liabilities associated with providing employee benefits. Employees often take a position based on the provided benefits. Protect the plan administrators and company with liability insurance in case an error is made.