Common Sources of Mistakes in Employee Benefits Programs

Medical care benefits were available to 69 percent of private industry workers and 89 percent of state and local government workers as of March 2018, according to data from the U.S. Bureau of Labor Statistics. Giving quality benefits to your employees doesn’t have to be difficult, but there are always mistakes that can be made, and these mistakes can be costly.

Be wary when shopping for your benefits for employees and designing your program, as an improperly-executed program could be harmful to your finances and your employee morale. Forbes recommends avoiding these common mistakes in employee benefit plans.

  1. Failing to Hire a Qualified Agent, Broker or Consultant to Help – If you don’t hire an expert, you’re not going to have a good time picking out plans. Whether it’s an agent, broker or consultant, any of these professionals can steer you in the right direction. You may not think that you need insurance coverage for your voluntary benefits program, but Employee Benefits Liability Insurance will cover acts, errors and omissions in the administration of your program.
  2. Rushing Through Your Broker Interviews – When selecting an agent to help you, it’s okay to take your time. The interview process is incredibly helpful for finding the right broker. The broker you choose is the one you’re going to have to develop a lasting relationship with, so make sure you choose wisely. A big mistake would be to rush the process.
  3. Failing to Decide in Advance What You Can Afford – If you aren’t aware of what your budget is, then you’re going to have problems. It’s important to know going in what benefits you have to prioritize.
  4. Failing to Research the Market – There’s a lot of products available today, and the biggest mistake you can make is not researching your options thoroughly. The coverage you are getting needs to be right for everyone in your agency. Make sure that the coverage you buy already has access to doctors and dentists that your employees go to.
  5. Releasing Your Employees’ Personal Information –  You don’t have to give over the names of your employees, their addresses or their Social Security numbers. The only thing a provider needs for a price quote are ZIP codes, ages, sex and family composition.
  6. Being Afraid of High-Deductible Plans – With a Health Savings Account (HSA) and/or a Flexible Spending Account (FSA), a high-deductible health plan can prove to be essential to a staffing agency. Avoiding them could be hazardous.
  7. Offering Your Employees “Free Benefits” – If the employee contributes for a portion of their employee benefits, then that means their benefits are that much more enhanced. Also, an employee who helps foot the bill is less prone to an unnecessary hospital visit.
  8. Forgetting to Make Parts of the Plan Optional – Small employers often focus on getting a core plan: medical, dental, disability and vision care. But some people might want to put more add-ons to their coverage, or some might want to take off parts of their core plan. That’s why it’s good to let your employees be versatile with their plans.


About World Wide Specialty Programs

For the last 50 years, World Wide Specialty Programs has dedicated itself to providing the optimal products and solutions for the staffing industry. As the only insurance firm to be an ASA commercial liability partner, we are committed to that partnership and committed to using our knowledge of the industry to provide staffing firms with the best possible coverage. For more information about Staffing Professional Liability Insurance or any other coverage, we have available to protect your staffing business, give us a call at (800) 245-9653 to speak with one of our representatives.