Workers rely heavily on their employers’ ability to exercise a high degree of care in managing benefits. Allegations of negligence or impropriety in fulfilling the duty of care associated with benefits administration could expose an employer to considerable liability. Employment Benefits Liability insurance coverage can equip employers to address problems concerning benefits programs.

Retirement Benefits

Employers that offer matching contributions to retirement accounts must practice attentive financial oversight. Accounts which enable employees to participate in a shared retirement or pension fund is an attractive benefit for employees. However, when employers choose how to allocate funds’ investment and those funds then sustain considerable losses, it may give rise to claims alleging a breach of fiduciary duty. An insurance policy that covers claims pertaining to the administration of retirement and pension counts can be an important resource.

Health Insurance

An issue in coverage for health benefits can have serious repercussions for employees or their family members. A clerical error, for example, could lead to a lapse in coverage or the unintentional exclusion of dependents. EBL insurance can offer protection in disputes concerning health insurance coverage.

By insuring benefits administration, employers are safeguarding their ability to continue providing benefits. Outsourcing administration will not wholly relieve employers of their liability, so it is important to maintain this type of coverage regardless of who handles benefits.