Employees are a valuable asset to any company, but every employee hired is also a risk. Every business, regardless of its size, faces an increased risk of lawsuits every time they finalize the hiring papers for a new employee. In order to protect themselves financially from potential claims against them, it is important for every business to have a good employee liability policy in place.
Common Employee Benefit Errors
Employee benefits liability coverage typically covers company errors and omissions in regard to the following employee benefits:
- Social security
- Workers’ compensation
- Medical and other types of insurance
- Unemployment benefits
- Profit sharing
- Stock ownership
- Maternity leave
- Tuition assistance
The above list is not complete and does not include all of the employee benefits that may be susceptible to errors and omissions by the company.
Employee liability coverage typically offers financial protection in the event that a company fails to accurately describe available benefit plans and rules to employees, does not properly maintain benefit records and files, or fails to enroll employees in available benefit programs. Basically, if a company makes an error or omission that affects an employee’s benefit status, the right insurance policy can protect them from employee lawsuits.
Finding the Right Policy
Businesses can find the right employee liability insurance policy for their needs by discussing their unique risks and budgetary requirements with their insurance provider.