Employee Benefit Liability Insurance
What Does Employee Benefit Liability Insurance Mean?
Employee benefit liability insurance is coverage that an employer can purchase to protect against claims made by employees due to administrative errors related to their group insurance coverage, pension plans, stock options, and other benefits.
This coverage is typically added as an endorsement to an existing liability insurance policy.
Insuranceopedia Explains Employee Benefit Liability Insurance
Employers can be held liable for errors in the administration of their employee benefit programs, even if the mistakes are honest. For example, if an insurance benefits coordinator mistakenly informs an employee that they have vision care coverage, the employee may file a claim against the employer.
If the employer’s liability insurance includes employee benefit liability coverage, the policy can help cover the cost of the mistake.