In fact, the exceptions have prompted businesses and insurance companies to develop a companion product called employers liability insurance. And mugwump indemnity agents know all about it .
They ’ ll aid connect you with multiple carriers and quotes to find the best coverage to help protect your employees, and you. And in the end, you ’ ll have a comprehensive business insurance plan that limits your business ‘s exposures to filthy lawsuits .
But first, let ’ s talk about the coverage, and the non-coverage, you can expect from your employers liability indemnity.
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What Is Employers Liability Coverage?
You ’ ve credibly hear of car gap indemnity — a disjoined policy to cover the dispute between what car indemnity covers and what is silent owed on the loan for a vehicle .
Employers liability indemnity is purchased with the same think in mind : to protect your occupation from costs resulting from employee claims that are not covered by workers ‘ compensation benefits .
It covers the opening between your company ‘s bed course and lawsuits stemming from employee activities. Some policy companies and state regulations even refer to employers liability policy as “ makeshift coverage. ”
Your submit, or the county in which you do business, may even require you to carry employers liability policy. Which is why it ‘s authoritative to work with an experience indemnity agent who is conversant with your industry, the sphere in which you do business, and any laws with which you must comply .
You may already have a professional liability policy, an EPLI policy ( employment practices liability policy ), a general indebtedness policy, and possibly a server of other coverages to protect your business from liability risk exposures .
Do you truly need another liability indemnity policy ? Yes. not one of these products fills the break between workers ‘ recompense and your revenues and assets, but employers liability indemnity does .
Surprising Claims Covered by Employers Liability Insurance
unfortunately, many businesses owners are under the misconception that any employee injury on the subcontract is covered by their workers ‘ compensation benefits. In reality, there are several exceptions that aren ’ metric ton. however, they are covered by employers liability, like :
- Third-party countersuits. Say an employee is injured due to equipment malfunction while operating a forklift. They file for workers’ compensation and your business is covered, right? What if they also sue the manufacturer of the forklift? The manufacturer’s lawyers will most likely bring a cross suit against your company, claiming the malfunction was due to improper maintenance. Workers’ compensation won’t help you fight that case, but employers liability insurance can step in.
- Loss of consortium. In most cases, an employee who receives benefits from a workers’ compensation claim can’t file a lawsuit against the employer. However, nothing prevents the spouse of the injured employee from filing a claim against your business asserting that they have suffered losses due to the injury. Employers liability insurance can pick up the tab for these types of claims.
- Dual capacity suits. These are lawsuits brought by an employee against the employer when the injury stems from a product manufactured by the employer. In such cases, the employer is liable, as both an employer and a manufacturer. Workers’ compensation can’t handle such complicated cases, but employers liability insurance can.
- Gross negligence claims. If one of your managers directs an employee to do something that the manager knows is dangerous and could result in an injury or worse, your business can be held liable, and workers’ compensation will not come to your aid. These are the most common type of employers liability claims and are commonly filed by spouses after a fatality where they believe the employer disregarded the employee’s safety.
DID YOU KNOW ?
Employers liability indemnity provides an add layer of protection for your occupation.
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many policies have limits on what they will pay out on these claims. You can choose higher limits and pay slightly higher premiums, but rates are normally fairly brassy for an extra $ 1 million in coverage .
Or, to increase your limits, you may want to think about a commercial umbrella policy, which works above the employers liability coverage. Your agentive role can help steer you toward the correct choice for you .
What Is Not Covered by Employers Liability Insurance?
adenine great as employers liability coverage is, it still doesn ’ deoxythymidine monophosphate cover everything. It besides contains exceptions, like :
- Punitive or exemplary damages because of bodily injury to an employee who is employed in violation of the law.
- Bodily injury to an employee while employed in violation of the law with the employer’s knowledge.
- Any obligation imposed by a workers’ compensation, occupational disease, unemployment compensation, or disability benefits law, or any similar law. These types of losses are covered under the specific policies designed for these exposures.
- Bodily injury intentionally caused, or aggravated, by the employer.
- Bodily injury occurring outside the United States, its territories, possessions and Canada. Note that this exclusion does not apply to bodily injury if a citizen or resident of the United States or Canada is temporarily outside of the country.
- Damages arising out of wrongful termination, discrimination, harassment, and other workplace-related wrongful acts. Coverage for this exposure is provided under an employment practices liability policy.
You can well avoid these risks by not breaking the law, carrying workers ‘ recompense coverage, and working with an independent policy agent to ensure that all of your liability policies have adequate limits and appropriate coverage options .
When to Add Employers Liability Coverage
Depending on where you do occupation, you may be able to purchase coverage as part of your workers ‘ compensation benefits. The premiums are tied together, so you do n’t have to worry about making separate payments .
In some states, however, you may have to purchase a separate policy, particularly if you ’ re behave business oversea .
If you have workers ‘ recompense coverage, you may already have employers indebtedness coverage. The two make together to protect you and your employees. however, you should make certain that :
- The limits are adequate.
- Your umbrella or excess policy extends over your employers liability coverage.
- If you have operations in a monopolistic state fund state (Ohio, North Dakota, West Virginia, Wyoming, Washington, the US Virgin Islands and Puerto Rico), that you have purchased workers’ compensation in that state and endorsed your workers’ compensation or general liability policy to provide stopgap coverage to protect you from your exposure in those states.
- If you have employees traveling abroad or full-time workers abroad, you should assess your exposure and consider purchasing a foreign voluntary workers’ compensation policy that includes employers liability.
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Finding and Comparing Employers Liability Insurance Quotes
independent policy agents will review your needs and help you evaluate which employers indebtedness indemnity policy makes the most sense. They ‘ll besides compare policies and quotes from multiple policy companies to make surely you have the best protection out there. They ‘ll hook you up — in a comprehensive and low-cost direction.
What’s So Great about an Independent Insurance Agent?
mugwump policy agents have experience in dealing with all kinds of businesses and policy policies. They excel at matching the most allow policy to the business in need .
Shopping around for policy policies can be crafty, jumble, and time-consuming, and an independent indemnity agent ‘s function is to simplify the procedure .
They ’ re besides there to help make indisputable you get the absolute best deal, and the one that meets your singular needs. They shop and compare indemnity quotes for you, and they ‘ll break down all the jargon so that you understand precisely what you ‘re getting .