If your business offers any kinds of employee incentives like group dental insurance, life insurance policies, or vision plan coverage, you might consider adding employee benefits liability insurance to your current liability policy. This specific type of insurance policy covers you and your organization against any potential lapses in worker incentives due to administrative negligence.
Even minor discrepancies like clerical and accounting errors can affect employee benefits, exposing companies and their administrative staff to complaints and/or possible legal action. Many employee liability issues arise at the beginning and termination of employment, when incentives like medical plans should be initiated or suspended. Even simply failing to inform new employees of company-sponsored insurance options and incentives may be considered negligence on the part of the organization. Similarly, if a company promises medical insurance coverage for new hires and then fails to file the necessary paperwork or add new employees to their existing group plan, the workers may experience a break in their insurance coverage without even realizing it.
What to Do About It
If your company’s current general liability insurance policy does not include employee benefits coverage, consider either adding it on to the package or purchasing a separate policy. The protection it affords can save you and your establishment time, money, and resources when dealing with potential employee complaints and administrative mistakes.
Such liability policies like employee benefits coverage can go a long way in building trust and accountability within any organization.