Do You Need Employer’s Liability insurance?

Do You Need Employer’s Liability insurance?

Does your business need employers’ liability insurance? 

Most employers understand that they need workers’ compensation insurance, but many lack employers’ liability coverage. Employers’ liability could be considered the step-sister to workers’ compensation – while they are very similar, they provide two different coverages that all employers need. Employers’ liability insurance coverage is designed to protect the employer from injury, disease or death claims made by employees caused by workplace practices or conditions that are not covered by workers’ compensation.

It’s common to believe that workers’ compensation covers all injury, disease, and death claims, but this is simply not the case. In fact, plaintiff attorneys will look for ways around the workers’ compensation statutes as they strive for a bigger payday. The more common expectation to workers’ compensation coverage could include:

  • Intentional acts/torts by the employer – For example, the coal mine operator who knows there is excessive methane gas in the coal mine but sends the workers in anyway.
  • Third party cross claims – For example, an employee falls off a ladder at work. Instead of filing a workers’ compensation claim, he/she files a lawsuit against the ladder manufacturer. This company then files a third party cross claim against the employer.
  • Dual capacity claims – An example of this is if an employee is injured by a piece of equipment on site and then files a product liability claim against your company.
  • Diseases or injuries excluded by the state workers’ compensation statutes – Depending on your state, this could be an injury such as arthritis that the employee develops from the repetitive aspects of her/his job.
  • Consortium or other loss of services to family members – For example, an injured employee’s spouse filed a lawsuit against your company because their spouse is no longer able to “engage” in marital relations after their work injury.

Owning and operating a business comes with many risks. To get the right policy for your business, contact the experts at American Premier Insurance, serving Phoenix and neighboring cities in Arizona.