Staffing Employee Benefits Liability Insurance

Under the Affordable Care Act (ACA), large employers must offer health insurance benefits to their full-time employees (those that work an average 30 or more hours a week). This can include eligible temp employees, which has further increased the already existing errors and omission exposure in the administration of employee benefits for temporary staffing firms. Employee Benefits Liability insurance is needed to protect an employer for an error or omission in the administration of an employee benefits program.

The types of errors covered under Employee Benefits Liability insurance are often determined by the definition of the word “administration”. This term generally applies to acts, errors or omissions in:

  • Describing the benefit plans and eligibility rules to employees, other eligible family members and beneficiaries.
  • Maintaining files and records related to employee benefits, whether the records are electronic or paper.
  • Enrolling, maintaining and terminating employees, eligible family members or beneficiaries in benefit plans.