What does Employer's Liability Insurance provide coverage for?

Employer's Liability Insurance is designed to provide coverage for claims that are not addressed by workers' compensation. This type of insurance covers situations where an employee may sue the employer for damages due to workplace injuries or illnesses that fall outside the workers' compensation benefits.

For instance, if an employee claims that their injury was due to the employer's negligence, or if the injury results in a third-party claim, Employer's Liability Insurance would provide the necessary coverage for those legal liabilities. This insurance acts as an essential complement to standard workers' compensation policies, as it ensures that employers are protected from potentially significant financial losses arising from specific claims that are not included under the traditional workers' compensation framework.

The other choices misinterpret the scope of Employer's Liability Insurance, as it is not focused on claims already covered by workers' compensation, does not extend to all workplace accidents without consideration of liability, and certainly does not relate to employee health insurance claims, which are a separate area of coverage altogether.