There are several benefits that you may be offering to your employees. Some benefits (such as Group Health Insurance) are compulsory while other supplemental coverages are just an additional way for you to attract qualified candidates and demonstrate the appreciation that you have for your employees. Overseeing these employee benefit plans is a hefty responsibility. Even when the plans are executed and managed effectively, fraud and errors can occur, negatively affecting the reputation of your company and costing a large sum of money to correct.
When administering employee benefits programs in your business, it is best to understand how to avoid the most common liability sources.
Hire a Qualified Agent
You will save so much time and expense by hiring a specialist to help you both pick a healthcare plan and advise you on how to modify it over the long run. Speak with an expert to help you find the best fit for your needs, and build a strong relationship with your representative. It is crucial that they focus on seeking out a package that is tailored to your business’s needs.
There are a wide variety of products available today. Make sure the coverage you are considering applies to your staff and includes access to the actual doctors, dentists, and facilities that your employees can utilize. Review your numbers before you meet with a representative so you are firm on what you have to offer going in. Knowing your budget will allow you to prioritize which benefits you would like to provide.
Protect Employee Information
Never hand over employee names, addresses or Social Security numbers when requesting quotes from potential insurance providers. The only details that providers should need to get a price quote are ZIP codes, ages, sex, and family composition.
Encourage Employee Contribution
Have employees contribute to a portion of their benefits to enhances the value of those benefits and help keep them affordable. An employee who is watching the dollar is less inclined to check in for unnecessary hospital visits—the number-one reason employers go over budget.
Be Mindful When Discussing Plans
Be careful in your discussions prior to making a decision. Gather opinions so you know what’s most important to your group, however, don’t open up the floor to ideas only to have people feel personally slighted if you don’t pick up the type of insurance they wanted. Form a health committee that will filter ideas, but keep company goals and objectives at the forefront.
Avoid Administrative Errors and Omissions
Administrative errors or omissions may include incorrect descriptions of the various benefit plans or the rules of eligibility; employee benefits files or records that are missing or incorrectly filed; or the failure to enroll, maintain, or terminate beneficiaries.
If different benefits are offered to different types of employees or your business has a high employee turnover rate, it is particularly crucial that you be mindful of how benefits are administered.
About Moody Insurance Worldwide
Moody Insurance Worldwide, a division of Moody & Associates that was founded in 1914, is a leading provider of risk management programs and insurance coverage to individuals and businesses across the East Coast. We write all sizes of businesses, with technical expertise in many key industry areas, and provide personal insurance programs for estates and high net worth individuals. Our licensed, experienced commercial account managers can work with you to determine the coverage that you need at a competitive rate. Contact us today at (855) 868-0170 to learn more about what we can do for you.