If you own or manage a staffing agency, you already know that finding the right staff insurance can sometimes feel overwhelming. For some, deciphering employee benefits liability insurance is particularly troublesome. Luckily, it can be easily broken down and understood.
Why Is It Important?
The Affordable Care Act made it so that larger employers must provide health benefits to employees who work more than 30 hours per week. In some cases, temporary employees are also eligible. However, errors often occur due to the complicated requirements. Employee benefits liability coverage protects the staffing agency in case it fails to administer benefits.
What Does It Cover?
Employee benefits liability staff insurance covers several issues defined under administration. It will protect agencies that either omitted or erred in describing the benefit plans and eligibility requirements to employees, did not maintain proper files related to the benefits or did not properly enroll, maintain or release employees from the benefits program.
Do I Need to Have It?
Whether you need benefits liability insurance depends on your staffing agency. If it is small and you only work with other small companies, it may be unnecessary. However, if you work with a large agency or represent a variety of large-scale employers, you should carry a policy.
When seeking staff insurance, a professional agency will be able to help you determine whether you need the policy and how much it should cover.