What is an Employer Waiver?
An employer waiver is a rider benefit that can be added to an income protection benefit.
It allows an employer to insure contributions that it is making in addition to a salary.
An important but often overlooked point is the need to identify what the employer waiver needs to cover:
If all contributions are being paid by the employee then there is no need for a waiver (no employer contributions to insure);
If the group benefits are inclusively costed then the waiver just needs to equal the employer's total contribution;
If the group benefits are exclusively costed and the employer is footing the bill for the costs, which is normally the case, then the waiver needs to equal the employer's contribution plus the costs. These typically include the administration costs and the cost of the risk benefits that continue in the event of a disability.
Whatever makes up the total employer contribution, please remember to include them all in your employer waiver when calling for quotes.This doesn't only apply to new quotes though and it's worth checking your existing structure as well so changes can be made at review, if necessary.