Typo Error to Beneficiary

[Guest Cindy C]

We normally send out a benefits summary letter to the beneficiary of a deceased employee informing them of what benefits are due (ie, life insurance, 401(k), ESPP, etc...) A letter was sent out to the spouse of the deceased employee with an incorrect basic life insurance amount. The employee was 80+ years old, and according to our SPD, there is a reduction in life insurance benefits. However, the amount in the letter stated the full amount ($22,000). Now we are getting a letter from an attorney stating to send the balance that was promised in the letter. Are we held liable for a typographical error and do we have to pay?

[KIP KRAUS]

Did the attorney’s really use the word “promised’? Sounds like a play on words to me. Did you promise anything or just inform incorrectly? Get an attorney to respond. It’ll cost less than paying the additional $11,000.