Endorsements

Employee benefits liability coverage in admitted P&C products

Coverage intent

Employee benefits liability coverage addresses certain errors or omissions in the administration of employee benefit programs.

Coverage impact

This coverage often sits inside or alongside commercial liability packages. Eligibility, exclusions, retroactive dates, and limits can differ materially by carrier.

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Sample form language

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Employee Benefits Liability Coverage (Claims-Made)

Form #: 1G2001FR 07 23

First National Insurance Company of America

General Liability

KS | Jun 23, 2026

This endorsement adds claims-made employee benefits liability coverage for negligent acts, errors, or omissions in administering an employee benefit program.

Employee benefit administration errors

1. INSURING AGREEMENT

    a. We will pay those sums that the insured becomes legally obligated to pay as damages because of a negligent act, error, or omission committed in the "administration" of, the insured's "employee benefit program", to which this insurance applies. We will have the right and duty to defend the insured against any "suit" seeking those damages.
...
    b. This insurance applies to a negligent act, error, or omission committed in the "administration" of the insured's "employee benefit program" only if:
        (1) The negligent act, error, or omission takes place in the "coverage territory";
        (2) The negligent act, error, or omission did not occur before the Retroactive Date, if any, shown in the Declarations nor after the end of the policy period; and
        (3) A "claim" for damages because of a negligent act, error, or omission is first made against any insured during the policy period or any Extended Reporting Period.

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Notable language points

  1. 01Centers coverage on administration of an employee benefit program.
  2. 02Uses claims-made timing tied to the policy period or an extended reporting period.

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