Tip of the Day: Help new grads pass Benefits 101

One of the best things about hiring new grads is getting to tap their newly polished skills and fresh energy to make your organization more successful. One of the worst things, though, is new grads can be a benefits nightmare. They feel invincible and don’t know what they don’t know – about the workforce overall and the specific offerings your company provides for their success and protection.

Thankfully, the folks at Gradguard.com have released a list of the top 5 most expensive insurance mistakes that young adults make to help you build your benefits case. Although a hair late for National Insurance Awareness Day (it was yesterday, June 28), the list is valuable any day of the year. According to Gradguard.com, grads most often get tripped up by:

1. Health insurance. Many graduates do not know that their health insurance may have been dropped, either from their parents company, or the one provided by the school. Be sure to give them a firm grounding in your plan’s features and options.
2. Travel insurance. This insurance is usually used in an emergency when healthcare services need to be rendered, it covers the loss of luggage or other property, and other travel emergencies. This travel insurance replaces the medical and property insurance that may not be active overseas.
3. Auto insurance: Purchasing the bare minimum may not be the smartest idea. Although cheapest at the time, it leaves grads much more liable in an accident and make coverage more expensive in the future. Some employers offer auto coverage as part of voluntary offerings. If your company is one, make sure to communicate it to new grads.
4. Renters insurance. Most young adults fail to purchase it – either as a voluntary benefit or on the open market. However, such coverage protects property and against damage incurred by others on the property.
5. Forgetting insurance cost can be controlled everyday. By driving safely, paying off credit cards and researching the cost of car insurance can add up in savings and cut down on the risk of insurance rates growing even more.