What does employer's liability coverage in a Workers Compensation policy protect against?

Employer's liability coverage in a Workers Compensation policy is designed to protect employers against claims made by employees for work-related injuries or illnesses that are not covered by the standard Workers Compensation benefits. This type of coverage comes into play when an employee sues the employer, generally alleging negligence or unsafe working conditions that led to their injury.

This coverage provides financial protection, including legal defense costs and damages awarded in lawsuits, allowing employers to manage the risks associated with potential litigation from employees seeking compensation beyond what is available through Workers Compensation. This is crucial as it addresses the gap that standard Workers Compensation policies may not cover, particularly in cases where the employee believes that the employer acted negligently.

On the other hand, general liability claims, third-party claims, and property damage claims pertain to different areas of liability coverage that do not involve direct claims by employees for their work-related injuries or illnesses.