EBL covers damages caused by an error or omission committed in the "administration" of your "employee benefits program." Below are definitions from an EBL policy that define the covered acts a little more clearly:
1. Counseling, "employees," including their dependents and beneficiaries, with respect to the "employee benefits program";
2. Handling records in connection with the "employee benefits program"; or
3. Effecting or terminating an "employee's" participation in a plan included in the "employee benefits program";
"Employee benefits program" means the following plans:
1. Group life insurance, group accident or health insurance, flexible spending plans, profit sharing plans, pension plans and stock distribution plans; provided that no one other than an "employee" may subscribe to such insurance or plans;
2. Unemployment insurance, social security benefits, workers' compensation and disability benefits.For example, failure to properly enroll someone on the health plan may leave an employee without coverage for a medical procedure.
The premium for this coverage runs about $200 - $400 per year, depending on the number of employees. Larger companies may pay more. Ask your agent about it. If you don't have an agent, give me a shout!