Many Employers Are In the Dark About ACA Liability

Most public attention focuses on the new health insurance coverage mandates of health reform – giving employers very little information about liability exposures, according to a report by Travelers. Thirty-six percent of more than 800 corporate decision-makers that were polled in March 2014 are not very familiar with the ACA’s overall requirements, and another 31% are only somewhat familiar. About 25% have not started to prepare for ACA compliance, which suggests that many companies could face penalties, lawsuits, regulatory actions, and harm to their reputation.

Respondents who say that they are extremely familiar with the ACA (33%) are three times more likely to be concerned about lawsuits. Employers can face penalties for not complying with the new healthcare law. But lawsuits and other liability risks are at the bottom of employers’ concerns about the ACA. Also, 47% are not very familiar with whistle-blower protections for employees who report violations. More than 55% of employers don’t plan to get help from an independent agent or outside legal counsel to understand their risks. Many employers don’t know that insurance products can offer some protection against these new and evolving risks, including fiduciary liability coverage, directors and officers liability coverage, and employment practices liability coverage. “As these mandates and the healthcare landscape evolve, it is important that we continue to work together with our independent agent partners to identify and promote risk mitigation strategies. Through education, prevention and management liability insurance, businesses will be better positioned to prepare for the unexpected,” said Jeffrey Klenk of Travelers. For more information, visit www.travelers.com.

Last Updated 11/18/2020

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