Offering employee benefits in the workplace is a great way to attract and retain top talent, and it can also help your brand image as well. Many business owners today include benefits like paid time off, access to special savings programs like health savings accounts and flex spending accounts. Modern businesses also typically include things like 401(k) savings plans as well in their benefits packages.
Managing employee benefits administration requires a lot of attention to detail, so it pays to have a dedicated team that is in charge of overseeing how benefits are issued and documented. Likewise, this team can create and make changes to benefit policies, provide documentation to employees during the onboarding process, and file the right paperwork with institutions to ensure that your business complies with local, state, and federal regulations surrounding employee benefits.
Protecting Your Bottom Line
While offering benefits comes with a lot of positives as well as a lot of work, you need to protect your business if legal action is taken over benefits. This protection can be obtained in several ways depending on the situation, but many business owners seek out employee benefits liability coverage for this purpose.
Employee benefits liability coverage is insurance coverage that protects your business if an employee believes that they were misled about benefits. It can also protect in cases where specific information was omitted in benefit documentation that caused an employee to fall out of benefits compliance.
While this kind of coverage only applies in very limited circumstances, it can be a blessing if your employee benefits administration team makes an error or when an employee decides that they were misled about what they were to receive. Lawsuits about these issues can be lengthy and require a lot of time and effort to be invested. Having employee benefits liability coverage may work to reduce the need for time spent in court while also protecting your company’s public image.