Commercial Insurance Quotes and Employee Benefits Liability

As a small business owner that has limited resources to spend on insurance products one of the cheapest endorsements that can be added to your commercial insurance quotes is that of employee benefits liability.

Typically this coverage will protect you and your company from claims and losses from employees that did not get their employee benefits properly put into place. With the entire federal cobra laws and state laws and mandates in the employee benefit areas with regards to health insurance, having this inexpensive endorsement added to your commercial general liability policy can provide needed protection for your company. Doesn’t matter whether you have one employee or thousands of employees if you’re providing any kind of health benefits you’re faced with this exposure to loss. Usually the purchasing of separate insurance policies to cover specific insurance exposures is much more expensive than combining them onto one policy. Clearly, you as the business owner need to identify and analyze all of your liability exposures from the services, products and operations that you perform throughout your company. Once you identify the exposures and analyzed the potential for loss and the extent of potential loss then you can determine whether you can combine your exposures to loss all on one commercial insurance policy.

Even though you can use the four risks control techniques those being; avoidance, loss prevention, loss reduction, and segregation that might not be enough to prevent an employee benefits liability claim. About the only way you could avoid the claim would be to not to provide any employee benefits coverage. This in this day and age is going to be extremely difficult from a competition standpoint and/or a federal and state regulation standpoint. Loss prevention, reducing the loss frequency, is always a possible solution but that does not eliminate the potential for a loss. Loss reduction, which means reducing the loss severity, is probably not an option either as there is no laws limiting your exposure to employee benefits liability. The last risk control technique of segregation, which means separating exposure units, is really not applicable because you cannot separate employees into different employee benefit packages, at least not normally. So, about the only way to deal with this exposure that all businesses have is to provide the employee benefits liability coverage. This can be done either with a stand-alone policy or by and adding the employee benefits endorsement to the commercial general liability policy. This is called risk financing, also known as loss financing. Financing the potential of this loss, employee benefits liability, via insurance coverage versus having to set aside the money from your cash reserves makes sense in most cases. In these tough and tight economic times, endorsing your general liability policy for employee benefits liability is normally the cheapest and best way to provide that coverage.

Commercial Insurance Quotes