Employee Benefits Liability Insurance

Trusted advice and insurance solutions to protect what matters most.

Business owners can be liable to their employees for errors or omissions in the administration of their employee benefits program. Even small clerical errors, such as failing to enroll a new employee in the company-sponsored health plan, can have severe consequences. These types of claims are not covered by an unendorsed Business Liability Insurance.

With employers competing to attract the best talent and highly skilled employees, providing a competitive retirement plan has arguably become as important as the salary and benefit package offered. You would think employees receiving an employer match as incentive to save for retirement would be grateful… and most are, but when problems arise with the administration of your benefit plan, lawsuits are likely to follow.

Fortunately, Employee Benefits Liability coverage is available to protect you for errors or omissions in the administration of your employee benefit program. Coverage is also available if you fail to advise employees of your benefit program. This coverage is inexpensive and is easily added to your business liability insurance.

Employee Benefit policies can vary by insurance company, but they generally cover the following types of claims:

  • Employer fails to enroll a new employee, or the employee’s eligible family members in the health plan provided
  • The employee is mistakenly told her live-in boyfriend is eligible for the company sponsored health plan
  • Employee is not enrolled in the company sponsored life insurance plan
  • An employee was enrolled in the wrong dental plan

For more information about Employee Benefits Liability Insurance, visit our Resource Center or contact one of our Licensed Advisors, we’re here to help!

employee benefits liability insurance

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“I have been with CoverLink Insurance for over 20 years! Marilyn has always been available for any questions or urgent situations! When was the last time you called a business and an actual person answered the phone nowadays? CoverLink still understands the importance of personalized care. Thanks Marilyn and CoverLink for the awesome customer service!”


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