An insurance cover could be termed as a stand-alone policy as it is a support provided on other policies. All these insurance plans typically protect the organization and its administration as well as management staff from all kinds of omissions and errors that can arise from any employee benefit plans. Based on the size of the organization, these employee benefit plans can involve group life insurance, group medical insurance, group dental insurance, group disability insurance, group vision insurance and many more. In addition, the section 125 plans, which allow all the employees through a cafeteria plan to configure their own personal coverage and benefits, according to them, are also considered under this employee benefits liability policy.
Generally,
most of the charges come from priestly errors, which might occur due to the
improper maintenance of the employee records or altering the insurance
documents of the employees contrasting from that of the requirement or request
of the employees.
In
addition, the administration errors can also arise while determining the
amounts of contributions on behalf of the employee or the employer, which could
sometimes extend to the employer's actuaries, accountants, record-keepers, or
trustees.
Other then these errors, there are a few
more errors, which might state as follows:
Ø It
might happen that a new employee had entered the firm, but has not been enrolled
in the group of medical cover timely, which might leave the new employee with
no health insurance benefits, as the enrollment period has passed for the
automatic enrollment process. If this is the case, then it directly means that
the employee would have to undergo the underwriting questions in order to get
all the employee benefits by adding to the company's group medical insurance
cover. In addition, it is quite possible that the employee having medical
issues will face some restrictions or might not get an opportunity to undergo
any insurance plan benefits.
Ø Similar
type of errors can happen when an employee leaves the organization or is
terminated. It happens when the proper cobra coverage, which is followed by a
mandated federal law in each state can also result in no or lack of coverage
for the employee that is alienated from the organization.
Most
commonly, the employee benefits liability cover transfers to the viable general
liability plan or is incorporated in the group medical insurance cover. Though
an organization can obtain a stand-alone employee benefits liability insurance cover,
therefore it is quite less expensive to endorse this coverage onto other insurance
covers. This policy does not cover criminal acts or any kind of dishonest acts like
other insurance policies does by the corporation of its employees. As far as
insurance policies are concerned, the employee benefits liability insurance plan
is inexpensive and should always be a part of your insurance portfolio risk
management approach.