Employee Benefits Liability

Provides protection for claims of financial damages resulting from your organization's administration of employee health and disability insurance, and other benefit programs.

How does this benefit your organization?

  • This coverage protects your organization from costly claims that result from oversights made in the communication and administration of your employee benefits program.
  • Provides financial resources to pay for damages sustained by an employee, past employee, or dependent as a result of oversights in the administration of your employee benefits program.

What does this coverage offer?

  • Covers financial damages that an organization employee is legally obligated to pay as a result of an oversight in the administration of an employee benefits program.
  • Covers up to $100,000/occurrence, $500,000/aggregate per policy period for unpaid medical expenses incurred by an employee, or their dependent, as a result of an error in administration of an employee benefits program.
  • For claims other than those involving medical expenses, coverage pays up to $250,000 in addition to the overall coverage limit to defend the organization and its leaders in the event of a lawsuit. Defense costs that exceed $250,000 will not reduce the overall coverage limit.
  • For claims that do not involve medical expenses, coverages for defense costs is limited to $250,000 (if defense costs exceed $250,000, coverage is not available).

This optional coverage applies to situations involving:

  • Any organization offering benefits like health and disability insurance to their employees
  • Christian schools or colleges
  • Day-care, elder-care, or after-school ministries that offer benefits to teachers and other staff members

Example of Claims Covered

Mistaken Advice: A Christian School offers health insurance to their employees. During orientation, the personnel director mistakenly advises employees that the health insurance includes coverage for in-patient psychological treatment. A school employee seeks treatment based upon these statements; however, the insurance carrier denies payment for this costly treatment. The employee makes a claim for financial damage against the school and the personnel director.

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