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Reduce Your Liability Exposure with Best Practises

Let's discuss the potential exposure which you may have regarding benefits. There are many examples, but here are only a couple based on recent court rulings:

• Employer held responsible for payment of LTD benefits to terminated employee who became permanently disabled during dismissal period. Employer did not maintain LTD benefits and thus accidentally became the insurer. Employee was 41 and benefits of $2500 were payable to age 65.

• Employer did not advise employee of optional life insurance benefit of 2 times salary vs a fixed $20,000. Employed for many years and employer never advised employee of the option to take more life insurance. Employee dies. Estate sues and wins $190,000 judgement for the insurance which would have been taken by employee if offered. • How would these situations affect your operating cash flow?

• There are many other similar situations, maybe we should talk.

Is this Really the Employer's Responsibility?

• We should start off with a disclaimer. We are not offering legal advice or HR advice. As Independent Benefits Brokers we have to stay current to the potential exposures which we and our clients may face. If you require specific legal or HR advice you should contact your professional of choice.

• The question of responsibility is often covered by common law as determined in previous cases and the Employment Standards Act. Your specific situation may involve one or both of these areas. You must be very careful.

What are the Best Practises when Dealing with Benefits?

• First of all you should be up front and straight forward with your employees regarding their benefit package. • Review benefit options and coverages with employees at least annually.

• Don't make any promises or commitments to terminating employees until you confirm with your insurance company they will meet your request etc., etc.

We have just produced an extensive "Best Practises" document for employers. If you would like a copy click here and send us a short note and we will get a copy back to you.

If you need some help or information about currently available benefit programs, whether it be for one person or 50, give John or Jordan a call right now at 519-622-3347. Maybe you have some questions about your current plan?

Next month we are going to deal with limiting your liability exposure on out of control drug and medical benefits that are coming. The future should concern you and you can be doing something about it now.

Do you need some help with Disability Income Planning or Business Overhead Expense Planning. Give John a call and get the straight answers.