You can offer your employees many benefits which make your business more attractive, including retirement accounts, shares in the company, and healthcare plans. Although these benefits are great to have in place, errors and fraudulent activities can inevitably occur, setting you back and damaging your reputation. In this case, it can be a great idea to purchase Employee Benefits Liability Insurance, known as EBL for short.
An introduction to Employee Benefits Liability Insurance
EBL, also known as fiduciary insurance, is a unique kind of liability insurance which protects your business from costly litigation arising from fraud and errors in handling employee benefit schemes. For example, your admin team may incorrectly describe the benefits or who is eligible, or they may accidentally fail to list beneficiaries to life insurance benefits. EBL normally comes as an “add-on” coverage to a commercial general liability insurance policy, and usually only covers claims which have been made during the designated coverage period.
Do I need EBL?
If you offer benefits to employees as part of your business, then EBL may be a good idea. Furthermore, if you offer different types of benefits to different employees, then the risk of errors is higher and EBL is even more advisable. It is also advisable to purchase EBL if your business has a high staff turnover, as a greater amount of administrative work (i.e. processing new employee information) can make it more likely than a costly mistake will occur despite the best intentions of your clerical staff.
Things to consider
In your general liability insurance policy, you should check whether the protections of EBL which are relevant to your business are already offered in your policy. However, if you do decide to purchase EBL, be sure to read the policy carefully and find out if there are any specific things which it doesn’t cover. For example, many EBL policies will not protect you from breach of contract, fraud, and practices such as sexual harassment and discrimination – you would need a different policy (or an additional policy) if you are looking to protect yourself from these phenomena.
Put simply, EBL is designed to protect the integrity of both your business and your employees, ensuring that everyone walks away happy in the event that mistakes crop up with your employee benefits handling. EBL is a great way to safeguard your reputation and bank accounts from damage if an error occurs, which is not unlikely if you’re running a business with a degree of complexity.
Looking for advice on getting the best Employee Benefits Liability Insurance deals? Speak to a member of our knowledgeable team today; we can provide you with EBL insurance which meets all of your needs and more!