Talking About Financial Matters That Affect You and Your Organization
Plan Administration Liability - PALC
Dec 19th, 2019
Property or Casualty Insurance (P&C) couldn’t be more different than the services Selectpath provides within the Financial Services space. But one of the areas where there is significant overlap is in the administration of employee benefit and group retirement plans. Failing to administer these plans properly can lead to catastrophic loss for plan members and the organizations that offer them. Here are the most common issues,
· Failing to enroll an eligible member who then
experiences an illness or worse followed by a lawsuit against the employer for
duty of care. This includes late
· Failing to notify members of their right and ability to apply for coverage beyond a non-evidence amount or convert their coverage at termination.
Either of these scenarios could lead to significant financial loss for the plan member or beneficiary which in turn often leads to expensive legal resolution. The Plan Administrator Liability Coverage should be part of every organization’s umbrella policy. There is limited cost for this feature (many insurers include it for free if requested).
Your P&C broker should have included this rider as part of standard operating procedure. If you need help finding this protection within your plan, Selectpath has several P&C specialist partnerships that would be happy to help.
Reach out to your advisor or client care team member to learn more about Plan Administrator Liability Coverage as part of your standard risk management process.