22 Feb 2018
Should You Have Employer’s Liability Insurance?

Find out what an employer’s liability insurance policy will cover.

If you own a business, you know that you need to have workers compensation insurance to keep your employees safe.  But did you know that there are two parts to your workers comp insurance?  The first part covers the cost of an injured employee’s medical costs and lost wages.  The second part is known as employer’s liability insurance and is the part of worker’s compensation that specifically covers lawsuits.  When it comes down to it, most business owners need to have this type of insurance.  Here are some of the claims covered by this type of policy.

Third Party Countersuits

If an employee was injured using a piece of equipment such as a forklift, they might choose to sue you and the manufacturer of the forklift.  If the manufacturer chose to sue you, claiming that the equipment malfunction was caused by your negligence, this is a third party countersuit.  In this case, regular workers compensation would not cover your legal fees.  Luckily, your employer’s liability policy would.

Loss of Consortium

Normally, an injured employee cannot sue you if they are receiving workers compensation benefits.  However, the spouse of an injured employee can sue you claiming that they have suffered due to their partner’s injuries.  This is known as loss of consortium.  Again, this type of claim is covered under your employer’s liability insurance.

Dual Capacity Suits

If an employee is injured by a product manufactured by the employer, they can sue.  In this case, the employer is liable both as an employer and manufacturer.  Standard workers compensation cannot cover these complicated suits, but employer’s liability can.

These are some of the cases in which employer’s liability insurance is a great asset for your business.  If you have more questions regarding your commercial coverage, don’t hesitate to contact us at Weaver & Associates in Arcadia, California.  Our dedicated team is ready to assist you with all your insurance needs.