As a thriving business it is impossible to avoid employee liability. Thankfully, a proper insurance plan can help to safeguard you in such cases. Whether you have already secured coverage or are looking for a new plan, there are 3 key facts to know about employee benefits liability coverage.
1. Know Your Benefits
It is imperative that you are familiar with which benefits are and which are not covered in your plan, as well as the specific definitions of what qualifies an incident for coverage. Knowing these things can help prepare you in the case that you must file a claim.
2. Know the Plan Limits
There are two main limits in an employee benefits liability plan. They are described as:
- Employee limit: the most the insurer will pay per employee or their family members
- Aggregate limit: the most the insurer will pay in total
You must stay abreast of these and other limitations specific to your plan.
3. Know the Exclusions
Depending on the bases of the claim, an insurer may not cover it. It is important to be aware of these exclusions, because in some cases it could leave you liable.
In understanding all of the aforementioned aspects, it is critical that you take a good look at your policy or potential policy to make sure that you fully understand the stipulations of the plan. In doing so, you will gain full understanding of your employee liability plan.