Employer’s Liability Insurance in Workers Comp

Strong Tie Insurance March 4, 2019 Workers Compensation

The work of employer’s liability insurance is to cover for the legal expense that may arise as a result of a legal suit by an employee due to work-related injuries. Normally, an employee should be compensated by theworkers compensation insurance California cover for any work-related illness or injury. However, if the employee feels that the accident was a result of the employer’s negligence, then he/she can file a lawsuit for additional damages caused.

Your employer liability insurance can help pay for legal fees that come up with attorneys and out-the-courts settlements. It protects the employer for any financial inconvenience caused by lawsuits filed by employees.

What Does Employer’s Liability Insurance in Workers Comp Covers?

  • Third-Party Suits

Most employees cannot sue their employers directly especially after they have been compensated by the workers compensation insurance. However, they can sue the manufacturers of the machine or equipment that caused them an injury. This move will, in turn, make the manufacturers sue you, opening a whole cycle of lawsuits.

That is why you need an employer’s liability insurance coverage. It will help you to sort out the costs that may come along with the lawsuits from both angles. To an extent, it offers you financial security against such unpredictable circumstances.

  • Loss of Consortium Suits

The spouse of an injured employee can sue your organization especially if the accident has caused permanent damage to the life of the injured worker. This is one of the most common types of lawsuits that you may come across as a result of work-related injury to an employee.

The employer’s liability insurance will cover all the costs that arise in such instances. It gives the employer some financial peace and protects him/her from any extortion whatsoever.

  • Dual Capacity Suits

This is common in instances whereby the employer is the manufacturer of the equipment that caused injury to the employee. The employee may, therefore, hold you accountable as an employer and the manufacturer.

If the injured worker wins the lawsuit, then you’ll have to part with a large amount of money if you were not covered with the employer’s liability insurance. To avoid any financial mishaps caused by such lawsuits, you need to get this insurance.

  • Consequential Body Injury Suits

This is another lawsuit that may be filled by the spouse of an injured worker. For instance, if the injured employee gets out of work and as a result cause the spouse to have high blood pressure, then your company can be sued to carter for such situations. You can sort this by having a flexible employer’s liability insurance coverage.

Without an employer’s liability insurance cover, a business owner may be inconvenienced especially if he/she has to pay a significant amount of money to sort out the legal suits filed by the employee, spouse, or manufacturing company.

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