Search the Community
Showing results for tags 'liability coverage'.
Found 1 result
-
Client thought it had properly changed the fixed contribution to its 401(k) plan. A few years later, it determined that the amendment was never prepared. Needless to say, the client owes a significant sum to the plan. The client filed a claim under its Employee Benefits Liability rider to its general liability insurance policy. Under this rider, the insurance company is to pay to the client “those sums which the insured shall become legally obligated to pay as damages because of a “wrongful act” in the “administration” of “Employee Benefits”. The insurance company has denied the claim based on the policy language that excludes "any claim or suit arising out of an insufficiency of funds to meet any obligation under any "Employee Benefits" Plan”. Does anyone have any experience with this exclusion? The client had sufficient funds to make the matching contribution at the full level in the years when it thought it match liability was a smaller amount.