Employee benefit liability insurance

What to Know About Employee Benefits Liability Coverage

Employee benefit liability insurance protects businesses in the case of errors and omissions involving employee benefits. For instance, a company that fails to maintain, enroll or terminate employees by mistake may need insurance coverage to help with the damages occurred in these situations.

What Is EBL?

EBL protects your business against financial losses. For instance, say that an HR manager failed to enroll a new employee in the health plan. Then, say the employee winds up in the hospital due to an accident or illness. When in the hospital, the employee finds out he or she does not have health insurance. This is the fault of your business and you are liable. With
EBL insurance, you have help in this situation.

Is EBL Fiduciary Liability?

Some people confuse employee benefit liability insurance with fiduciary liability. The difference between the two is that EBL protects from errors and omissions in a variety of plans. Fiduciary protects from Employee Retirement Income Security Act exposures. EBL tends to exclude these exposures.

When it comes to EBL insurance, no business should go without it. Errors happen. If an error occurs involving your employee’s benefits, you could end up having to pick up cost that your company can’t afford. No matter what, having employee benefit liability insurance is always a better option.

Insurance Risk Advisors