Employee Benefits Plan Liability Coverage Law and Legal Definition

Employee benefits plan liability provides protection to employers against claims brought by employees or former employees for negligent acts or omissions in the administration of the insured's employee benefits programs. This insurance covers group life insurance and group accident and/or health insurance, profit sharing plans, employee stock subscription plans, and workers' compensation, unemployment insurance, social security benefits and disability benefits. Coverage is available for acts or omissions in various administrative activities such as counseling employees, interpreting employee benefits programs, handling records, and enrolling/terminating/canceling employees.