Employment liability insurance protects the owner/operator of a business by providing insurance coverage for claims that may be brought against the company by its employees for injuries and illnesses that are the fault of the employer. It also provides general liability coverage against injuries to employees and damage to company property.
Employment liability is usually included as a separate section of your workers compensation policy, and serves as an extension of that coverage. It covers situations where an employee may bring a civil action against you for something besides an injury or illness, that is outside the normal risk of the job. This may include such claims as assault or false imprisonment in the workplace.
Do I Need Employment Liability Insurance for My Business?
State law requires that all companies purchase employment liability coverage to compensate employees for any injuries that they might suffer while on the job. There are a few instances, however, where you will not be required by law to purchase employment liability insurance for your company, such as where the owner is the sole employee or where the business is family owned and operated and is not incorporated.
What Other Types of Insurance Coverage May Protect My Business?
Some employment insurance policies provide added protection that you may not even be aware of. Such policies include:
- Employment Benefits Liability Insurance
- Commercial General Liability
- Professional Liability or Errors and Omissions Insurance
- Directors and Officers Liability Insurance
- Workers Compensation Insurance
- Employment Practices Liability
Should I Contact an Insurance Attorney?
Insurance policies can be difficult to decipher and an attorney with experience in insurance litigation will be able to help you preserve your rights. If a claim is being made against you by an employee and you are covered by an existing employment policy, you insurance company may settle the claim with you. If they resist doing so, an employment attorney will able take action against them and seek the compensation you are entitled to.