What Is Employer Liability Coverage?
If you aren’t familiar with the term employer liability coverage, this is a short summary on how it works and how it benefits the employee in case of an accident.
Employer Liability Coverage
Just as auto gap insurance is a separate policy that is used to cover the difference between what a car insurance company will pay for and what is still owed on a loan for a car, employer liability coverage works in a similar way. It covers the gap in expenses between a companies profit and lawsuits that might happen due to employee activities.
What Isn’t/Is Covered By Employer Liability Coverage?
Here are a few instances where this type of coverage will and will not benefit you, the employee.
Loss Of Consortium
If a worker gets hurt on the job and receives workman’s compensation, they cannot turn around and file a lawsuit against a company. However, this doesn’t mean that the employee’s spouse cannot file a claim. If this happens, the employer liability coverage will cover the costs of the claim.
One would also like to think that an employee would not put themselves in danger or that a manager would not allow an employee to do something dangerous. But more often than not, it does happen. This is where employer liability coverage comes in handy. If someone does something directly that is dangerous or a manager directs an employee to do something dangerous and that person gets hurt, workers compensation will not come to their aid. Instead, the business would be held responsible for the injuries or death.
3rd Party Countersuits
If an employee who works at a company is injured by a piece of equipment, they can file for workman’s compensation. However, if you also try to sue the company that manufactures the equipment, the manufacturer’s lawyers will most likely try to countersue the company where the equipment was used, deeming improper maintenance. If the employer loses the countersuit, Employer liability coverage is what would be used to help the employee that got hurt.
Make Sure That You Have Good Representation
Whether you work for a business and they have workman’s compensation or employer liability coverage, you need proper representation to help you get compensation to cover medical expenses and your hurt on the job.
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