Employers’ liability insurance is an insurance policy that handles claims from workers who have suffered a job-related injury or illness not covered by workers’ compensation.
Employer’s Liability Insurance, also known as Workers’ Compensation Insurance, provides coverage to employers for liability they may have towards employees for workplace injuries or illnesses. The coverage varies depending on the policy and jurisdiction, but it provides a safety net for both employers and employees in case of workplace injuries or illnesses.
However, employers’ liability insurance does not cover legal costs from employee lawsuits charging discrimination, sexual harassment, or wrongful termination. To cover these situations, an employer would need to purchase a separate type of policy called employment practices liability insurance (EPLI).
Most workers’ compensation insurance policies automatically include employers’ liability insurance.
Employers’ liability insurance places limits on the amounts paid out per employee, per incident, or per policy.