What it does
BP 04 98 adds employee benefits liability coverage to the BOP on a claims-made basis. ISO describes it as covering damages because of the insured's negligent acts, errors or omissions in the administration of an employee benefit plan that result in the loss of an employee's benefits – for example failing to enroll an employee in a health plan or giving wrong advice about eligibility.
Key provisions
- Claims-made with a companion Extended Reporting Period endorsement, BP 04 99, which ISO describes as a 5-year extension for reporting claims.
- It covers administrative errors, not fiduciary breaches under ERISA; fiduciary liability is a separate coverage (for example MP 00 07).
Who needs it
Any employer that enrolls staff in group health, dental, life, disability or retirement plans.
Quoting and selling notes
- Ask about plan types and who administers them; outsourced administrators reduce but do not eliminate the exposure.
- Connecticut, North Carolina, Montana and Virginia use state versions.
Related forms
BP 04 99; fiduciary liability MP 00 07.
