3 Things Companies Should Learn About EBL Coverage

Every employer is expected to offer benefits to its employees. The contents and administration of an employee benefits plan can be a sensitive matter, and it’s common for serious issues to arise. Companies need employee benefits liability coverage in their insurance program to protect against the financial risk of potential error in regards to employee benefits. There are a few things that business owners should know about the scope of EBL coverage.

1. EBL Covers Administration Incidents

The purpose of EBL coverage is to protect against errors or omissions that occur when an employer administers benefits. The insurer will pay for the benefits that were mistakenly omitted as a result of employer error.

2. EBL Does not Cover Fiduciary Liability

Employee benefits liability coverage and fiduciary liability are often mistakenly referred to interchangeably. In actuality, fiduciary liability coverage encompasses a broader scope of potential incidents and may be the more appropriate coverage option for some businesses.

3. EBL Covers Uncommon Claim Situations

Companies will often opt for EBL coverage on the grounds that it is an affordable coverage plan that seems to provide adequate protection. However, many of the most common claims that arise in relation to employee benefit programs are not covered under the narrow umbrella of a standard employee benefits liability plan.

EBL coverage serves to protect a company and its assets in the event of human error that can occur when administering employee benefits. As with any insurance plan, though, companies should carefully consider if it is the best option.

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