Employers Liability Insurance Fills Gap In Liability Coverage
Employers liability insurance is part two of the required coverage under a Workers Compensation and Employers Liability (WC&EL) Insurance Policy. Many workers reside in a state in which this is mandatory coverage for their employer. The worker's compensation insurance coverage is composed of three standard insuring agreements. Employers face significant loss exposure from liabilities that come as result of their employee's injuries or deaths. This exposure comes from both governmental statutes and tort law. Coverage from this type of loss is generally not covered in other forms of business liability insurance protection.
What Is Employers Liability Insurance?
Workers compensation and employers liability insurance is composed of three parts: workers compensation, employers liability insurance, and other states insurance.
Workers Compensation Definition: Workers compensation coverage states that the insurer agrees to pay the state required compensation and benefits as specified by the law of that particular state. This portion of the policy does not specify the specific benefits to be paid to the employee except by stating that it will pay as the law requires.
Other States Insurance Definition: This is the part of the coverage that provides coverage to the employer when they expand their operations into other states.
Employers Liability Insurance Definition: This is the portion of the WC&EL insurance that provides your standard liability coverage for employers. This protects the employer from lawsuits that arise from the death or injury of one of their employees. Part two of the plan is somewhat intended to cover those circumstances in which your employee is not covered by Workers Compensation.
There are a number of common circumstances in which employer's liability insurance law dictates that compensation is paid the employee. As stated above, whenever an employee is exempt from coverage from Workers Compensation, the employer can become liable. The death of an employee may also trigger a family member's lawsuit over the loss of services as a result of the accident.
Employer liability insurance policies will also cover suits from secondary injuries that are the result of the death or injury of one of your employees. For instance, in the case of the death of one of your employees, the company may be held liable for the resulting health problems of their family members (heart attack from the news, etc.).
Because this type of liability insurance is not covered by public liability insurance, most employers are required to have both public and employers liability insurance coverage.
Where Can You Get An Employers Liability Insurance Quote?
Employers liability insurance quotes will be included in every Workers Compensation & Employers Liability Insurance policy. The cost of your insurance plan will have a lot to do with the states in which you do business and require coverage in. As with all other types of insurance, the very best thing that you can do to get the coverage that you need is to get a wide assortment of quotes from different sources. Either use an insurance broker, or narrow your choices down to a select few insurance companies that offer the coverage that you need. You should have a pretty good idea of the liability that your company may face, and any special requirements your industry will have.
Employers liability insurance is a mandatory part of every Workers Compensation package. Despite the legal ramifications of not having this type of insurance, the cover that it provides should not be underestimated. Tort law and other governmental restrictions have guaranteed safety for your employees. Make sure that you provide the same sort of coverage for your business.
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