Restoration Insurance: What is Employers Liability?

Workers compensation insurance was designed as an exclusive, no-fault remedy for an injured employee to be compensated in the event of a claim.   Workers compensation, while primarily designed to cover the medical bills and lost income for the injured employee, also provides some important additional insurance coverage through employers liability.

 What is Employers Liability?

Employers Liability helps protect companies against claims that aren’t considered part of the medical bills of workers compensation, and are also excluded under the general liability policy.

Employers liability provides coverage to restoration contractors for these four common types of claims:

  • Consequential bodily injury claims
  • Dual capacity claims
  • Loss of consortium claims
  • Third-party-over claims

Consequential bodily injury claims arise when a family member of the injured employee becomes ill due to employee’s injury.  For example, if a spouse were to have a nervous breakdown caused by their employee-spouse’s injury.

Dual capacity is the idea of bringing a claim against the employer, but not in their capacity as the employer.  For example, if an employee were to slip and fall on the company premises and the employee brought suit against the employer, not as the employer, but as the owner of the building.

Loss of consortium is losing the services of a spouse or parent.

Third-party-over claims come from an injured employee suing a suing a third party, who in turn sues the worker’s employer.

Most companies carry employer’s liability limits of $1,000,000 per employee, per injury, and per policy.

If you have any additional questions in how employers liability works, please feel free to contact our office.