An attractive benefits package has several advantages. It can make your company more competitive in the search for talent. It communicates that you care about your employees’ lives beyond the scope of what they can do for you. If someone at your company misrepresents or denies benefits to eligible employees, however, this message can become skewed. In that instance, you need employee benefits coverage.
Employee benefits insurance is a type of liability coverage that is specifically designed to step in when your benefits program is mishandled internally. Affected employees may sue your company, and this coverage can pay the legal fees associated with that suit. If damages are awarded, your coverage may take care of those costs as well.
Covering Your Mistakes
Some benefits programs are complicated, so the occasional mistake may not be completely unavoidable. The experts at World Wide Specialty Programs recommend employee benefits coverage in case a representative of your company commits certain errors:
- Giving incorrect information about coverage breadth
- Mismanaging the benefits of an employee or beneficiary
- Failing to maintain files properly
Offering an outstanding benefits package to your employees can help you attract and keep competent staff. If elements of the program are misrepresented, however, you may need an insurance policy that covers both your employees’ rights and your legal expenses.