Hassle-Free Health Coverage: Employers' Liability
The limits of employers' liability include bodily injury by accident, bodily disease and bodily disease by aggregate. This coverage protects against a variety of common law exposures. It is needed to fill gaps in the compensation coverage and to cover claims not subject to the compensation laws.
Although you -- as an employee -- give up the right to sue in exchange for workers' comp benefits, not all employees come under the law. Those not covered may sue.
In recent years, successful suits against employers have also been filed by spouses and children of injured workers. Employers' liability insurance covers these claims.
Under Employers' Liability coverage, the insurance company agrees to pay all sums (subject to policy limits) which your employer becomes legally obligated to pay as damages because of employee injuries which are covered by the insurance -- providing that damages result directly from an injury arising out of and in the course of employment.
Employers' Liability Coverage covers the following types of claims:
- damages claimed by a third party;
- care and loss of service;
- consequential injury to a spouse or relative of the injured worker;
- actions brought against the insured in a capacity other than as employer.
Injuries to workers covered by federal laws -- for example, the Longshoreman's Act -- are excluded because the policy is designed to cover exposures which are subject to state jurisdiction, but coverage for many of these exposures may be added to a policy by endorsement. Fines, penalties and damages for violations of law are excluded because the policy is designed to cover only the actual legal liability exposures of employers.
