Audit or Examination
A routine inquiry can create specialized defense needs, added expense, and significant demands on internal teams.
Confidence for the plan you run every day.
The Compliance Protection Program is an insurance-based solution designed to help employers manage certain covered financial consequences when good-faith Section 125 plan administration is questioned.
Employer-centered
Broker-aligned
Policy-backed
The Compliance Protection Program
Prepared protection for real-world plan administration.
Up to $10MTotal protection available
9 EndorsementsCoverage tailored to the plan
Why It Matters
A well-run plan can still face an unexpected question.
Section 125 plans require ongoing coordination across plan documents, payroll, eligibility, elections, reimbursements, and recordkeeping. Even responsible administration can be tested by an audit, examination, or enforcement action.
Administrative Error
An eligibility, election, reimbursement, payroll, or documentation mistake may have consequences beyond the correction itself.
Financial Disruption
Defense costs, interest, penalties, and certain employee or employer tax effects can create an unplanned budget event.
CPP is a financial protection solution—not a compliance shortcut. Sound plan design, responsible administration, and independent legal, tax, and benefits advice remain essential.
Clarity When It Counts
Coverage designed around real operational exposures.
What CPP May Address
A focused response to covered compliance issues.
Subject to policy terms, conditions, exclusions, and selected endorsements, CPP may help address certain financial consequences arising from the everyday operation of a Section 125 plan.
- Defense costs for covered audits, examinations, and enforcement actions
- Certain interest and penalties tied to a covered compliance issue
- Everyday administrative and operational errors
- Documentation and recordkeeping gaps
- Errors involving eligibility, elections, and reimbursements
- Certain unexpected operational compliance events
This summary is illustrative only. No item listed above is automatically covered; the applicable policy and endorsements determine coverage.
Built for the People Behind the Plan
One program. Two important perspectives.
CPP gives employers a clearer way to approach specialized compliance exposure and gives brokers and advisors another tool for building resilient client strategies.
For Employers
Add a purpose-built financial protection layer to responsible Section 125 plan administration.
- Help reduce the budget shock of certain covered events
- Choose endorsements aligned with the plan’s structure
- Scale primary limits with plan participation
- Operate with a clearer response framework
For Brokers & Advisors
Bring clients a focused conversation about an exposure traditional benefit strategies may not directly address.
- Differentiate your Section 125 planning conversation
- Match coverage options to client priorities
- Support employers across a range of sizes
- Collaborate with a specialized program partner
Have a client or plan in mind? Let’s talk through the structure, objectives, and available protection options.
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The Program Standard
Built for responsible administration—not shortcuts.
CPP is designed for plans operated in good faith. Its role is to help manage certain covered financial consequences when an otherwise responsibly administered plan faces an unexpected compliance issue.
01
Good-faith operation
The program is intended for employers committed to compliant plan design and administration.
02
Sound administration still matters
Coverage complements—but does not replace—proper documents, controls, recordkeeping, and professional advice.
03
The policy controls
Every response is determined by the applicable terms, conditions, limits, exclusions, and endorsements.
Tailored Coverage
Build around the plan, not a generic checklist.
Begin with core protection, then consider the endorsements that fit the employer, plan structure, and desired level of protection.
Payroll Tax Protection
May address certain employer payroll tax exposure tied to a covered compliance issue.
Employee Impact
May respond when a covered compliance issue creates certain tax consequences for employees.
Excess Limits
Adds an optional $5 million layer of protection above the primary coverage limit.
Right-Sized Limits
Scales the primary protection limit with average monthly covered lives, subject to policy terms.
Extended Reporting
Extends the opportunity to report certain covered issues after the policy period ends.
Public Sector Fit
Tailors the program for qualifying government and public-sector employers.
Spousal Medical Reimbursement Protection
Extends protection to certain spousal medical expense reimbursement plan exposures.
Employee Tax Shield
Coordinates protection for certain covered employee benefit compliance exposures.
Operational Event Protection
Provides a residual layer for certain unexpected administrative compliance events.
Availability, eligibility, scope, and terms vary. E04 is presented as the standard plan-sizing endorsement; all coverage remains subject to the issued policy.
How Much Protection
Meaningful limits. Clear structure.
Primary protection can be sized to the plan, with an optional excess layer available for employers seeking additional capacity.
Primary Protection
Generally scales with average monthly covered lives and is subject to the applicable policy.
Optional Excess Layer
Additional protection may be available through the E03 Excess Limits endorsement.
Total Available
Combined primary and optional excess limits, when available and selected.
Figures are program-level summaries only and are not a quote, binder, or guarantee of coverage. Actual limits and availability are determined by underwriting and the issued policy.
How It Works
Purpose-built protection, made understandable.
Procedant helps employers and their advisors move from an initial conversation to a program structure aligned with the plan.
Review the Plan
Start with the employer’s plan structure, participation, operating model, priorities, and areas of concern.
Structure the Protection
Evaluate the primary limit and applicable endorsements, then move through underwriting and placement.
Operate & Respond
Continue responsible administration. If a potential covered issue arises, timely notice allows the policy response process to begin.
Not sure where your plan fits?
Bring us the plan structure and your questions. We’ll help clarify the next conversation.
Common Questions
A clearer place to start.
These answers provide a general overview. A conversation with Procedant can help address the plan-specific questions behind them.
Who is the Compliance Protection Program designed for?
CPP is designed for employers operating Section 125 plans in good faith and for the brokers, advisors, and plan partners helping those employers evaluate specialized risk protection.
Does CPP guarantee that a plan is compliant?
No. CPP is not a compliance certification and does not replace proper plan design, administration, documentation, or independent legal, tax, and employee-benefits advice.
How much protection may be available?
Primary protection may be available up to $5 million, with an optional additional $5 million excess layer for up to $10 million total, subject to underwriting and the issued policy.
Can the program be tailored to different plans?
Yes. The program includes a core coverage structure and a series of endorsements intended to address different employer, employee, plan, public-sector, reporting, and limit considerations.
How can brokers and advisors use CPP with clients?
Brokers and advisors can bring Procedant into the conversation to review the employer’s objectives, explain the program at a high level, and determine whether moving into underwriting makes sense.
What determines whether a specific matter is covered?
Coverage is governed exclusively by the terms, conditions, definitions, limits, exclusions, and endorsements of the applicable issued policy. Marketing summaries do not expand or modify coverage.
Start the Conversation
Contact Us
Bring more confidence to Section 125 plan risk.
Whether you’re an employer evaluating your own plan or a broker helping a client, Procedant can help you understand the program and decide whether it belongs in the conversation.
Coverage overviewThis page is intended solely as a general summary of the Compliance Protection Program and does not amend, extend, or alter coverage. Coverage is governed exclusively by the terms, conditions, definitions, limitations, exclusions, and endorsements of the applicable policy.
Important informationCPP is an alternative risk financing program designed to address certain operational and administrative risks. This page is not legal, tax, insurance, or employee-benefits advice, nor a guarantee of any outcome. Employers should consult their independent legal, tax, benefits, and insurance advisors.