{"id":3910,"date":"2023-10-31T11:21:52","date_gmt":"2023-10-31T11:21:52","guid":{"rendered":"https:\/\/businessyield.com\/ins\/?p=3910"},"modified":"2023-10-31T11:21:52","modified_gmt":"2023-10-31T11:21:52","slug":"employer-liability-insurance","status":"publish","type":"post","link":"https:\/\/businessyield.com\/ins\/business-insurance\/employer-liability-insurance\/","title":{"rendered":"EMPLOYER LIABILITY INSURANCE: What Is It & What Does It Cover?"},"content":{"rendered":"
Insurance has always been a key player for businesses when it comes to maximum protection against unforeseen circumstances. Modern businesses must protect themselves against legal and financial risks that may arise in the course of their daily operations. One possible way of mitigating these risks is by buying employer liability insurance coverage. It serves as a hedge against potential legal and financial pitfalls involving employees. Although it’s not mandatory, like workers’ compensation insurance, it’s still relevant. This is because it comes into play when workers’ liability insurance is insufficient. Today, our purpose is simply to explain what employer liability insurance is, what it covers, and everything you need to know about it.<\/p>
Employer liability insurance is a policy that assists with the financial obligation that business owners face in the event of a legal dispute arising from an employee’s injury or illness that occurred during their employment. Simply put, an employee who encountered an accident or sustained injury in the course of work may likely sue the boss if he feels he wasn\u2019t compensated enough. In the absence of the employer’s liability insurance, the business owner will have to personally bear the financial burden of the legal expenses, a circumstance that can potentially incur significant costs. According to The Hartford<\/a>, this type of coverage is included as a component of a workers’ compensation insurance policy. However, in jurisdictions characterized by monopolistic structures, business owners may have to buy it as a single policy. Businesses can also by it as an add-on to workers’ compensation insurance. <\/p> Although this policy provides coverage for employees, like other insurance coverage, it has limitations too. Employer liability insurance does not provide coverage for legal expenses incurred as a result of employee lawsuits alleging acts of discrimination, sexual harassment, or wrongful termination. To address these circumstances, an employer would be required to procure a distinct form of coverage known as employment practices liability insurance (EPLI).<\/p>How Does Employer Liability Insurance Work?<\/span><\/h2>