Employee Benefits Liability

This coverage is purchased as an endorsement to the Commercial General Liability policy. It is intended to cover damages from your organization’s negligent handling of the administration of your employee benefits program.

Enhanced Coverage of Nonprofits OWN Employee Benefits Liability

Summaries of key features only. Actual policy language will differ.

  • No deductible
  • Full policy limits of $1M applies
  • Includes claim investigation costs and legal expenses

Employee Enrolled in Wrong Plan:

An employee was enrolled in the wrong dental plan and when her dentist discovered this he refused to finish treatment. We paid for a dentist in the other plan to finish the treatment at a reduced cost of $385.

Employee not Enrolled in Life Insurance Plan:

An employee who was supposed to be enrolled in a life insurance plan had her application misplaced and then died. Her beneficiary made a claim and we were prepared to pay the full $25,000 benefit when the life insurance company stepped up to the plate and paid the claim subject to our paying the premium that would have been due, which amounted to $180.