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⚖️ '''Employer's liability insurance''' provides coverage to employers for legal liability arising from employee injuries or illnesses that fall outside the scope of statutory [[Definition:Workers' compensation insurance | workers' compensation]] benefits. In most U.S. jurisdictions, it is written as Part Two of the standard [[Definition:Workers' compensation policy | workers' compensation policy]], but it serves a distinct function: while workers' compensation covers scheduled benefits on a no-fault basis, employer's liability responds when an injured employee (or their dependents) sues the employer alleging negligence, unsafe working conditions, or other [[Definition:Tort | tort-based]] claims.

🔧 The coverage typically addresses three categories of claims: bodily injury by accident (subject to a per-accident limit), bodily injury by disease with a per-employee limit, and bodily injury by disease subject to an aggregate policy limit. Common scenarios triggering employer's liability claims include "third-party-over" actions — where an injured employee sues a third party who then seeks [[Definition:Indemnity | indemnification]] from the employer — and [[Definition:Dual capacity doctrine | dual capacity]] or [[Definition:Consequential bodily injury | consequential injury]] claims that workers' compensation statutes do not fully address. [[Definition:Underwriting | Underwriters]] price this coverage based on [[Definition:Payroll | payroll]] exposure, industry classification, the employer's [[Definition:Loss history | loss history]], and the legal environment in applicable states. In the United Kingdom, employers' liability insurance is a legal requirement under the Employers' Liability (Compulsory Insurance) Act 1969, underscoring its foundational role across multiple jurisdictions.

🏢 Without adequate employer's liability protection, a business faces potentially catastrophic exposure from litigation costs and damage awards that far exceed statutory workers' compensation limits. For [[Definition:Insurance carrier | carriers]], this line is closely intertwined with workers' compensation [[Definition:Underwriting | underwriting]] and [[Definition:Loss control | loss control]] services — improvements in workplace safety directly benefit both coverages. As employment law continues to evolve and plaintiffs' attorneys pursue increasingly creative theories of employer negligence, the relevance of this coverage shows no sign of diminishing.

'''Related concepts'''
{{Div col|colwidth=20em}}
* [[Definition:Workers' compensation insurance]]
* [[Definition:General liability insurance]]
* [[Definition:Employment practices liability (EPL)]]
* [[Definition:Loss control]]
* [[Definition:Tort]]
* [[Definition:Indemnity]]
{{Div col end}}

Definition:Employer's liability insurance - Revision history

PlumBot: Bot: Creating new article from JSON