Confidence in Every Compliant Plan
A clear, modern layer of protection for the employers who run Section 125 plans — and the partners who stand behind them.
The Idea
Peace of mind, Built in
Running a Section 125 cafeteria plan shouldn’t keep you up at night.
Even a well-run plan can face an audit, an examination, or an unexpected question from a tax authority. S125CP is the protection that responds when that happens — helping cover the costs of defending and resolving a covered compliance issue, so a routine inquiry never becomes a financial setback.
You focus on running a great plan. We help cover what happens if it’s ever questioned.
Up to $10M
Total protection available
9
Ways to tailor your coverage
Every Size
Built for employers large and small
What you get
What S125CP Protects You Against
When a covered compliance issue arises in the everyday operation of your plan, S125CP helps cover the financial fallout.
- Defense costs for audits, examinations, and enforcement actions
- Interest and penalties from a covered compliance issue
- Everyday administrative and operational mistakes
- Documentation and recordkeeping gaps
- Errors in eligibility, elections, and reimbursements
- Unexpected operational compliance issues
The Promise
Protection Designed for Responsible Plan Administration
S125CP is designed for plans operated in good faith. It protects you against honest mistakes and unexpected issues — not against arrangements that were never meant to comply. That’s exactly what keeps the program strong, dependable, and fair for everyone in it.
- Built for compliant, good-faith plans
- Rewards sound, careful administration
- Not a substitute for proper plan design
Tailored Coverage
Coverage that fits your plan
Start with core protection, then add only the options that fit — nothing you don’t need.
Payroll Tax Protection
Covers employer payroll tax exposure tied to a covered compliance issue.
Employee Impact
Steps in when a compliance issue creates tax consequences for your people.
Excess Limits
Adds an extra $5M layer of protection on top of your primary coverage.
Right-Sized Limits
Coverage that scales automatically with the size of your workforce.
Extended Reporting
Report covered issues even after your policy period ends.
Public Sector Fit
Tailored for government and public-sector employers.
Spousal Medical Reimbursement Protection
Extends protection to spousal medical expense reimbursement plans.
Employee Tax Shield
Coordinated protection for certain employee benefit compliance exposures.
Operational Event Protection
A residual layer for unexpected administrative compliance issues.
E04 comes standard with every plan. Everything else is yours to choose.
How it Works
Simple by Design
Choose your coverage
Begin with core protection, then add the options that match your plan.
Operate with confidence
Run your plan day to day, knowing protection is already in place.
We respond
If a covered compliance issue arises, S125CP helps cover the cost.
How Much Protection
Room to Cover What Matters
$5M
Primary Protection
$5M
Optional Excess Layer
$10M
Total Available
Confidence, Covered.
S125CP brings clarity and protection to Section 125 compliance — so employers can offer the plans their people value, with confidence.
This overview is intended solely as a general summary of the S125CP program and does not amend, extend, or alter coverage. Coverage is governed exclusively by the terms, conditions, limitations, exclusions, and endorsements of the applicable policy.
About this overview
S125CP is an alternative risk financing program designed to address certain operational and administrative risks. This overview is for general information only and is not legal, tax, or employee-benefits advice, nor a guarantee of any outcome. Coverage is subject to the terms, conditions, and exclusions of the policy and applicable endorsements. Employers should seek independent legal, tax, and benefits counsel regarding plan design and tax treatment.