Terms and Conditions

1. Who Snug Is

Snug is an AI-powered benefits platform and licensed insurance agency/broker. Snug helps small businesses and their employees understand, compare, implement, enroll in, and manage employee benefits, including Individual Coverage Health Reimbursement Arrangements ("ICHRAs"), Section 125 cafeteria plan support, marketplace health plan guidance, and voluntary or worksite insurance products.

Snug is not an insurance carrier, underwriter, bank, payroll company, healthcare provider, attorney, tax adviser, accountant, investment adviser, or fiduciary unless a separate signed agreement or applicable law expressly says otherwise.

2. Eligibility and Accounts

The Services are intended for users in the United States who are at least 18 years old. A parent, guardian, or authorized account holder may provide information about dependents where permitted by law and the applicable benefit workflow.

You agree to provide accurate, current, and complete information; keep credentials confidential; promptly notify Snug of unauthorized access; and accept responsibility for activity under your account. Employer administrators represent that they are authorized to act for the employer and that Snug may rely on their instructions.

3. The Services

Depending on your account and the features available to you, the Services may include:

• Employer registration, benefits onboarding, company profile, employee roster, document, and recommendation workflows.
• ICHRA setup support, allowance modeling, employee class support, plan document support, compliance reminders, and reimbursement workflow support.
• Section 125 cafeteria plan support, including premium-only plans, employee election workflows, qualified benefit menus, and payroll deduction support.
• Employee invite, onboarding, dashboard, plan search, plan comparison, plan selection, voluntary insurance education, and voluntary election workflows.
• Licensed broker support for individual health plans and voluntary/worksite insurance products.
• AI assistants, recommendations, explanations, summaries, ranking, document support, and support handoff workflows.
• Communications through web, email, SMS, phone, voice, messaging apps, or other channels when available and permitted.

Some features may be beta, pilot, limited-release, or future capabilities. Snug may modify, suspend, discontinue, or limit any Service at any time, subject to any signed agreement that applies to you.

4. Insurance, Carrier, and Broker Terms

Snug may act as a licensed insurance agent or broker for individual health insurance, voluntary insurance, supplemental insurance, and other benefits products where Snug is licensed, appointed, or otherwise authorized. Snug is licensed in all 50 states, and product availability, appointments, and required disclosures may vary by state, carrier, product, and transaction.

Insurance products are issued, underwritten, priced, administered, renewed, cancelled, and paid by third-party insurance carriers, not Snug. Carrier policy forms, certificates, applications, riders, exclusions, waiting periods, eligibility rules, underwriting rules, evidence-of-insurability rules, premium rules, cancellation rules, and claim procedures control over anything in the Services.

Snug may receive commissions, overrides, bonuses, referral fees, marketing allowances, administrative fees, or other compensation from carriers, agencies, partners, or service providers. Compensation may vary by carrier, product, state, policy, premium, volume, persistency, or other factors. Snug may also charge employer fees, platform fees, PEPM fees, administrative fees, setup fees, or other fees described in an order form or signed agreement.

5. Voluntary and Worksite Insurance

Snug may market, explain, quote, recommend, collect applications or elections for, transmit information about, enroll users in, and service voluntary or worksite insurance products from carriers such as Aflac, Colonial Life, MetLife, Unum, Allstate Benefits, Guardian, Voya, and similar insurers or benefit providers.

Voluntary products may include accident, critical illness, cancer, hospital indemnity, dental, vision, life/AD&D, short-term disability, long-term disability, and related supplemental benefits. Product availability, pricing, underwriting, issue age, guarantee issue, participation, portability, conversion, continuation, claim, cancellation, and renewal rules are determined by the applicable carrier and policy documents.

Employees are responsible for reviewing product materials and confirming whether a product fits their needs. Employers are responsible for enabling any required payroll deductions, honoring valid employee authorizations, remitting premiums when applicable, and providing accurate employee, payroll, eligibility, and termination data.

6. ICHRA and Section 125 Support

Snug may help employers design, implement, document, administer, and support ICHRAs and Section 125 cafeteria plan workflows, including premium-only plans, simple cafeteria arrangements, full cafeteria plans, health FSA or dependent care FSA workflows, employer flex-credit arrangements, employee salary-reduction elections, qualified benefit menus, nondiscrimination support, and related payroll deduction workflows where available. Unless a signed agreement says otherwise, the employer remains the plan sponsor and plan administrator and is responsible for final plan design, employee classifications, contribution amounts, required notices, legal compliance, payroll treatment, reimbursement funding, tax treatment, and employee communications.

Snug may generate drafts, summaries, documents, forms, notices, election records, payroll files, reports, or reminders. These materials are not legal or tax advice and should be reviewed by the employer and its professional advisers before adoption or reliance.

7. Marketplace and Health Plan Assistance

Snug may help users compare individual health plans, estimate costs, check provider or drug data, review plan attributes, understand ICHRA allowances, and route or assist with enrollment through HealthCare.gov, state marketplaces, carriers, enhanced direct enrollment partners, brokers, or other authorized channels.

Plan information, premiums, subsidies, cost-sharing reductions, provider directories, drug formularies, quality ratings, service areas, and availability can change. Estimates are educational and are not price guarantees. Final eligibility, premium tax credits, cost-sharing reductions, enrollment status, effective dates, and coverage are determined by the applicable marketplace, carrier, or government program.

By using Snug to request enrollment assistance, you authorize Snug or its authorized partners, where applicable, to act as your agent or broker of record and to transmit information needed to quote, apply for, service, or enroll in coverage. You may use HealthCare.gov, a state marketplace, or a carrier directly instead of Snug at any time.

8. User Responsibilities

You are responsible for the accuracy and completeness of information you provide, including company information, employee rosters, payroll details, eligibility data, household information, income, dependents, providers, medications, tobacco status, enrollment preferences, payment information, and benefit elections.

You agree not to misuse the Services, bypass security controls, access another user's data, submit false information, interfere with the platform, scrape or copy the Services without permission, reverse engineer the Services, use the Services for unlawful discrimination, or attempt to manipulate AI systems or reveal hidden prompts, credentials, private code, or confidential information.

9. AI Features

Snug's AI features may explain benefits, compare options, generate recommendations, organize information, draft summaries, answer questions, render UI cards, and support workflows. AI output may be inaccurate, incomplete, outdated, or misunderstood. You must review important information before relying on it.

Snug's AI Policy is incorporated into these Terms by reference. If the AI Policy conflicts with these Terms, these Terms control unless the AI Policy provides more specific AI-related obligations that do not reduce your rights under applicable law.

10. No Professional Advice

The Services do not provide legal, tax, accounting, payroll, medical, investment, financial planning, underwriting, claims, fiduciary, or ERISA advice. Snug may explain benefits concepts and support benefit workflows, but you are responsible for consulting qualified professionals where advice is needed.

11. Electronic Communications and Signatures

You consent to receive notices, disclosures, agreements, records, benefit documents, applications, elections, signatures, authorizations, reminders, and other communications electronically. Electronic records and signatures may satisfy legal writing and signature requirements to the fullest extent permitted by law.

By providing a phone number or messaging address, you authorize Snug and its service providers to contact you about the Services by call, text, voice, email, or messaging app, including automated or prerecorded messages where permitted. Message and data rates may apply. You may opt out of promotional texts by replying STOP, but service-related communications may still be required to provide the Services.

Snug may record calls, chats, messages, signatures, clicks, timestamps, IP addresses, device information, account actions, and audit events for compliance, security, quality, support, and recordkeeping purposes.

12. Billing and Payment

Employers and other paying customers agree to pay all fees described in the applicable order form, checkout flow, invoice, statement of work, or signed agreement. Fees may include subscriptions, PEPM fees, setup fees, administrative fees, platform fees, pass-through costs, taxes, and other charges.

Unless a signed agreement says otherwise, fees are non-refundable, payment obligations are non-cancellable for the committed term, and Snug may suspend Services for late payment, failed payment, excessive returned payments, fraud risk, or noncompliance. Insurance premiums are separate from Snug fees unless expressly stated otherwise and may be collected by carriers, payroll providers, payment processors, or other third parties.

13. Privacy, Sensitive Data, and Security

Snug's privacy practices are described in its Privacy Policy when published and in any applicable signed agreement. By using the Services, you authorize Snug to collect, use, process, transmit, store, disclose, and retain information as needed to provide, secure, support, improve, and comply with the Services.

Benefits workflows may involve sensitive information, including income, household details, dependent information, medications, provider names, health-related preferences, plan selections, payroll data, and employer census data. You should not submit Social Security numbers, full bank account numbers, payment card numbers, government IDs, passwords, or other unnecessary sensitive identifiers unless Snug specifically requests them through a secure workflow.

HIPAA, business associate, and protected health information obligations apply only where legally required or expressly agreed in a signed business associate agreement or similar written agreement.

14. Third-Party Services

The Services may depend on carriers, marketplaces, government systems, payroll providers, payment processors, banks, communications vendors, AI providers, cloud providers, benefit data sources, brokers, agencies, and other third parties. Third-party services may have their own terms, policies, fees, outages, data practices, and eligibility requirements.

Snug is not responsible for third-party products, underwriting, policy terms, claims decisions, provider directories, formularies, marketplace determinations, payroll errors, payment failures, bank services, or external outages except to the extent required by law or a signed agreement.

15. Intellectual Property and Feedback

Snug and its licensors own the Services, software, workflows, designs, content, documentation, AI orchestration, models, prompts, trademarks, and other intellectual property. You receive a limited, revocable, non-exclusive, non-transferable right to use the Services for their intended purpose during your authorized access.

You retain ownership of information you submit, but you grant Snug the rights needed to host, process, transmit, display, analyze, and use that information to provide, secure, support, improve, and comply with the Services. If you provide feedback, Snug may use it without restriction or compensation.

16. Disclaimers

The Services are provided "as is" and "as available" to the fullest extent permitted by law. Snug disclaims all warranties, express or implied, including warranties of merchantability, fitness for a particular purpose, title, non-infringement, availability, accuracy, and error-free operation.

Snug does not guarantee that any plan, benefit, insurance product, subsidy, tax treatment, reimbursement, payroll deduction, carrier approval, policy issuance, claim payment, provider coverage, drug coverage, compliance status, recommendation, or enrollment outcome will be available, accurate, final, approved, or suitable for you.

17. Liability

To the fullest extent permitted by law, Snug will not be liable for indirect, incidental, special, consequential, exemplary, punitive, or enhanced damages, lost profits, lost revenue, lost savings, lost data, business interruption, substitute services, medical costs, uncovered claims, denied claims, tax penalties, payroll errors, or coverage losses arising from or related to the Services, even if Snug was advised of the possibility of those damages.

Nothing in these Terms limits liability that cannot be limited under applicable law. Any additional liability limits in a signed agreement, order form, carrier agreement, or benefit document apply according to their terms.

18. Indemnity

You agree to defend, indemnify, and hold harmless Snug, its affiliates, and their officers, directors, employees, contractors, agents, and partners from claims, damages, liabilities, losses, costs, and expenses arising from your misuse of the Services, violation of these Terms, violation of law, inaccurate information, unauthorized instructions, benefit decisions, payroll decisions, employee communications, plan sponsor obligations, or third-party claims related to your account or organization.

19. Suspension and Termination

Snug may suspend, limit, or terminate access to the Services if we believe there is nonpayment, fraud, security risk, legal risk, regulatory risk, misuse, inaccurate information, unauthorized access, violation of these Terms, or other risk to Snug, users, carriers, employers, employees, or third parties.

Termination of platform access does not automatically cancel insurance coverage, carrier policies, employer benefit plans, payroll deductions, reimbursements, or legal obligations. You must follow applicable carrier, marketplace, employer, payroll, and plan procedures to change or cancel benefits.

20. Disputes

These Terms are governed by Delaware law, without regard to conflict-of-law rules, except where federal law or another mandatory law applies. Before filing a claim, you and Snug agree to send written notice describing the dispute and requested relief and to attempt in good faith to resolve it for at least 30 days.

Except for small claims, intellectual property claims, confidentiality claims, security claims, nonpayment claims, or requests for emergency injunctive relief, disputes will be resolved by binding individual arbitration under the rules of the American Arbitration Association unless a signed agreement states otherwise. You and Snug waive the right to a jury trial and the right to participate in a class action, collective action, private attorney general action, or representative proceeding to the fullest extent permitted by law.

21. Changes and Contact

Snug may update these Terms from time to time. Updated Terms are effective when posted unless a later date is stated. If we make material changes, we may provide notice through the Services, email, account notice, or another reasonable method. Continued use of the Services after updated Terms become effective means you accept them.

For questions about these Terms, contact Snug through the support channels available in the Services. Legal notices must be sent through a method that provides written confirmation of delivery unless Snug provides a different notice method in a signed agreement.