Definition

While a general worker's compensation policy covers the costs of medical bills and loss of wages for employees who were injured on the job, the employer's liability policy goes a step further and protects the company if the employee files a lawsuit claiming that the injury or illness was a result of negligence or unsafe practices by the employer.

Coverage

Illnesses and injuries are covered under this policy. Legal fees sustained by the company are generally not. Therefore, it is recommended that businesses also acquire a general liability policy to cover such expenses.

Coverage Amounts

Minimum coverage amounts vary by state. When determining coverage above the minimums set forth by the state, companies should research the local medical markets and plan the coverage accordingly.

Employment Practices Liability Insurance

Employer's liability Insurance should not be confused with employment practices liability Insurance. Although they each have a similar goal in protecting the employer from liability issues, an employment practices liability policy protects against personal damages to an employee or groups of employees. Such damages may include those suffered as a result of harassment, discrimination or wrongful termination. This type of policy will not cover against physical harm to an employee.

Reducing Liability

Regardless of the type of business,principles can be implemented to reduce the overall potential liability. Incorporating quality-control measures, increasing employee-safety and risk-assessment training, and conducting regular OSHA compliance reviews greatly mitigate the potential liability.

Source:

Worker's Compensation Insurance

Greenwood Insurance