How employer’s liability insurance protects your business.
Employer’s Liability insurance is one part of a Workers’ Compensation insurance policy. The two work together to provide an umbrella of coverage that protects a business against liabilities arising from injuries or death of an employee. Together, they are critical to a business that could suffer severe financial hardship liabilities in case of a work-related injury or death.
What Does Employer’s Liability Coverage Entail?
New York Employer’s Liability is a business insurance coverage included with a Workers’ Compensation policy. This coverage is designed to shield the business against legal liability arising from employee death or injury. This coverage includes employees, family members, and any third party who might seek legal action. While Workers’ Compensation works as a ‘no fault’ remedy, Employer’s Liability requires that negligence is proven in order for employees or their families to collect any benefits.
New York is one of two states where coverage is unlimited. Therefore, Employer’s Liability coverage is unlimited with regard to injuries and employments that are subject to the New York Workers’ Compensation Law. For example, a worker is in a scissor lift installing overhead piping when the lift collapses. He collects Workers’ Compensation benefits but also sues the lift’s manufacturer, who in turn sues the employer, claiming improper use or maintenance. The Employer’s Liability coverage is unlimited for this loss because the injury and employment are compensable under the New York Workers’ Compensation law.
In the event that your business is sued, your Employer’s Liability insurance will provide legal counsel as well as provide coverage against a judgment.