There are two areas of liability that exist regarding NEM’s. NEM’s are the highest amount of insurance the insurer will provide without the employee proving there are insurable.
Highest available NEM Each year, carriers amend their NEM’s which could lead to a higher amount of protection for employees. These increases are not automatic. If an employee does become disabled, the employer can be found liable for the difference. Applying over the NEM If an employee’s salary permits them to be covered for a greater amount than the NEM, the employee will be capped at the NEM until they prove insurability. Each year, the employees must be notified of their individual differences between the NEM and their highest available amount. Please contact Joe Leger to discuss.