Take a look at your workers compensation insurance policy. Notice that, in addition to covering the statutory benefits for an injured/ill worker, the policy also likely includes coverage for “Employers Liability.” (Note that in a few states this coverage may not be automatically included.)
Many business owners are unaware of the purpose of this important type of insurance.
Following are a few examples of claims that may be addressed by employers liability insurance coverage:
- A third party, such as an equipment manufacturer, is being sued by an injured worker who alleges that an equipment malfunction contributed to the injury. That third party has also named the employer in the lawsuit.
- A dependent, such as a spouse or child, is filing a claim against an employer alleging that the injury is responsible for additional financial hardship on the family. For example, the family alleges that it now must shoulder expenses to prepare meals and complete daily chores normally handled by the injured employee.
- A spouse claims the injury has caused a loss of consortium (loss or deprivation of the benefits of a family relationship/ability to show affection towards one’s spouse).
Employers liability coverage added to a standard workers compensation policy may help with legal costs, settlements and court judgments.
