What does employer liability coverage protect against?

Employer liability coverage is designed to protect employers from legal liabilities that may arise from lawsuits filed by employees due to work-related injuries or illnesses. This coverage typically comes into play when an employee believes that their injury or illness is the result of negligence on the part of the employer and decides to take legal action.

In the context of workers' compensation, while the system generally provides benefits to injured workers regardless of fault, employer liability coverage allows the employer to defend themselves against claims that fall outside the typical workers' compensation benefits, such as cases where they might be held liable for punitive damages or for intentional harm to the employee.

Understanding this aspect of employer liability coverage is crucial, as it underscores the legal protections that employers have when facing potential litigation from employees regarding workplace injuries, ensuring they have financial backing to manage such legal risks effectively.