AP Blog

By Jason Wissmiller, 08/11/2020
We often receive phone calls from clients and prospects asking for a general liability policy to satisfy an insurance requirement in a contract, such as an airport lease. Like most insurance products, clients buy an aviation general liability policy with little knowledge of what the policy actually covers. In...
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By Mark Holt, 08/03/2020
N-95 masks have been the subject of increased focus by OSHA. These masks were originally designed for industrial use in sectors such as mining, construction, painting and manufacturing. Designed to filter out airborne particulates, they have a logical place in the healthcare setting to control airborne diseases...
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By Trevor Gilstrap, 07/29/2020
Fracking is a method that has been in use for decades but has become the hot buzz word in recent years, and is the alleged cause of everything from tainted water to silicosis. Regardless of your opinion on these growing allegations, these types of lawsuits from upset citizens are increasing throughout the...
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By Chris Pavone, 07/28/2020
Trucking’s role in keeping goods, materials and the economy rolling during the global pandemic has been nothing short of phenomenal and will certainly play a role in re-establishing “normal” supply lines depleted by hoarding households and profiteering resellers. Hopefully, everyone in the...
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Growing rates of healthcare workers are experiencing physical and psychological injury as a result of workplace violence related to resident care. A staggering 95% of healthcare workers have reported exposure to aggression. However, research has found that workplace violence is underreported, signifying that...
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07/15/2020
When setting up a flying club, or managing an existing flying club, there are several things you can do to make yourself more attractive to an underwriter. By making yourself more desirable to an underwriter, you can maximize your coverage and minimize the premiums you pay. Here are our Top 10 Flying Club...
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By Nathanael Alexander, Esq., 07/14/2020
On July 8, 2020, by a vote of 7-2, the Supreme Court of the United States (SCOTUS) in their Little Sisters of the Poor decision upheld Trump administration rules permitting employers to decline contraceptive coverage (including preventative health services, birth control pills, IUDs, etc.) on the basis of...
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By Nathanael Alexander, Esq., 07/08/2020
On June 15, 2020, the Supreme Court of the United States (SCOTUS) held in Bostock v. Clayton County, Georgia that Title VII of the Civil Rights Act of 1964 bars an employer from firing an individual merely for being gay or transgender. In its ruling, the Court noted that it is “impossible to discriminate...
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By Gina Ekstam, 07/08/2020
Agribusiness worksites, shared worker housing, and shared worker vehicles present unique challenges for preventing and controlling the spread of COVID-19. Joint guidance by the CDC and DOL provides a template that employers can adapt to protect their workers. Through thoughtful planning, it is possible to...
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By Nathanael Alexander, Esq., 07/02/2020
Due to the COVID-19 pandemic, countless employees with young children have opted to utilize the time off provisions of the Families First Coronavirus Response Act (FFCRA) in order to provide care to their children in lieu of school and day care center closures nationwide. Now that schools are closed and a vast...
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Employee Benefits Liability - Inexpensive Protection with a Catch
10/27/2016

Employee Benefits Liability Coverage provides errors and omissions coverage for the administration of employee benefits programs of an insured. This coverage is usually endorsed to the General Liability Policy or can be a standalone policy but almost always is written on a, claims made form vs. an occurrence trigger of coverage form.

Though the coverage is endorsed to the General Liability policy, it contains its own limits, insuring agreements and exclusions and the coverage is not triggered by bodily injury and property damages as with most General Liability coverage’s. The coverage trigger is a claim being made during the coverage period because of an administrative error in connection with an employee benefits program. What type of employee benefits activities can give rise to errors and omission events?

  • Providing advice to employees about covered benefits programs
  • Errors in recordkeeping in connection with a covered program
  • Misinterpreting a covered program’s regulations for an employee
  • Enrollment errors or cancellation of a participant in a covered program.

What type of employee benefit programs or plans are typically covered with Employee Benefits Liability Coverage?

  • Group life insurance
  • Group accident or health insurance
  • Profit sharing plans
  • Pension plans
  • Employee stock subscription plans
  • Workers compensation benefits
  • Unemployment insurance
  • Disability benefits
  • Social security benefits

An example of a claim that would be covered under Employee Benefits Liability Coverage:

Sally is the HR Administrator. Jane is a new employee. Sally gives Jane enrollment forms for the Health and 401k Plans and instructs her to return the forms within 30 days. Jane completes them in 3 days and returns them. Sally inadvertently places the forms in a stack of paper that is shredded at the end of the month and never enrolls Jane in both plans. Jane falls at home 5 months after starting work, turns in a health claim, only to be denied benefits. Employee Benefits Liability will pay the health insurance claim files by Jane because of the enrollment error.

The coverage for $1,000,000 is very inexpensive. Typically, the cost is only a couple of hundred dollars annually. Benefit plans to keep track of errors are more and more common, even with the prolific use of online enrollment in our society today.

The catch mentioned in the title of this article is this: Be careful moving coverage from carrier to carrier. Employee Benefits Liability (EBL) is written on a claims made form which has a retroactive date. This date is typically the first original date that EBL coverage was purchased. If you move coverage to a new carrier, make sure the original retroactive date is moved forward to the new policy. Otherwise, you could lose coverage for past errors that come to light in the future.

Make sure you have this coverage in place on your policy.  You can typically find this inside or closely attached to your General Liability policy.  If you are unsure if you have this coverage, visit AssuredPartners Property & Casualty and we can help you