Hold-Harmless Protection Each Plan Year
Ask whether the protection covers each year of the agreement or only the first. A promise that lapses at renewal is not much of a promise.
What to know.
Check how the limit works over time: a lifetime figure, an annual one or one tied to the agreement term. Check what happens to a loss from a prior year if you change providers.
At each renewal, ask for the clause again. Terms can change when an agreement is renewed.
Where to look next.
The Limit
See how it works over time.
Is It in Every Agreement?
See the question to ask.
Compliance Calendar
The dated filings and notices employers owe.
Making the protection last across years.
Treat each renewal as a new decision. Ask for the clause again, compare it with last year’s, and check that the services, the limit and the exclusions have not changed. Providers update their standard terms, and a change that was not highlighted can reach you without anyone noticing.
If you change providers, plan the handover. Losses arising from the earlier period may fall to the old agreement, and some agreements cover only errors discovered while the agreement is in force. Ask both providers how prior-period problems are handled, and have the answer in writing before the switch.
Common questions on this topic.
Four questions to settle before you rely on it.
Does the limit reset each year?
Ask. The written terms say.
What about a loss from a prior year?
Ask how losses from earlier terms are treated.
Do terms change at renewal?
They can. Ask for the clause each time.
What if we change providers?
Ask both providers how prior-period problems are handled.
Does protection continue after the agreement ends?
It depends on the terms. Some cover errors made during the term even if discovered later, while others apply only to claims made during the term. Ask which applies.
Who should review the terms at renewal?
The person who manages the agreement, with counsel for anything that has changed. Keep each year’s version so differences are easy to see.
Ready? Upload your renewal, or talk it through with someone first. No cost, no obligation.
General information about compliance service protections, not legal or tax advice. Plan-specific questions belong with your counsel, and we will bring them in.
Related guides.
Is Your Compliance Vendor’s Protection in Writing?
The overview this page belongs to.
Compliance Services With Hold-Harmless Protection
What the protection is, what it covers and what to ask.
Is Hold-Harmless Protection in Every Service Agreement?
The next question on the same topic.
Where the Rules Come From.
The laws and rules named on this page link to the statute or regulation they come from. This is general information, not legal or tax advice, and rules change, so check the current text.
COBRA Excise Tax (26 U.S.C. 4980B)
The tax on failures to meet COBRA continuation coverage requirements.
ERISA Civil Enforcement (29 U.S.C. 1132)
Includes the daily amounts a court may assess for failing to provide required notices.
Send us your renewal.
We’ll tell you whether it looks competitive, where we see opportunity, and the five questions we’d put to your carrier. No cost, and no obligation to move anything.
The renewal letter
Your current plan summary
Contribution split by tier
Enrolled counts by tier
Four documents, two more if your group is 50 or more. Nothing else; every extra one is a reason to postpone.
An independent employee benefits consulting firm. We look at the entire benefits program — cost, plan performance, risk and administration.
Switch to CFH. Unhappy with your broker? Your employees won’t notice. You will. →