Employers liability insurance is a part of workers’ compensation insurance. It can help protect your business from financial losses if an employee files a lawsuit against your business because of a work-related injury or illness.
If you don’t have employers liability coverage, you may be responsible for paying for costs related to a lawsuit out of pocket. This could amount to a significant financial loss after a serious accident.
Jump ahead to learn:
- What can employers liability insurance cover?
- How much does employers liability insurance cost?
- How does employers liability coverage work with Workers’ Comp?
- How NEXT helps protect small business owners
What can employers liability insurance cover?
Employers liability coverage is a workers’ compensation benefit that can help provide legal defense against five main types of employee lawsuits:
1. Negligence claims
If an employee gets hurt on the job because you didn’t take adequate steps to protect them, they may file a lawsuit and sue you for damages.
Let’s say one of your cooks suffers a burn in your restaurant kitchen. Your workers’ compensation insurance policy can help cover the employee’s medical bills and lost wages.
But suppose the employee suffered a permanent injury and sues you for negligence because they say you didn’t provide a safe kitchen. In that case, employers liability insurance could help pay for expenses related to the claim.
2. Consequential bodily injury claims
Workplace injury doesn’t just affect the employee. It could also affect the people who care for them as well. If the spouse of an employee gets sick or hurt as a result of caring for the injured worker, they may sue you.
For example, a spouse claims they injured their back helping the injured employee out of the car for physical therapy appointments. Employers liability insurance could help pay for expenses related to the claim.
3. Third-party over action lawsuits
If an employee sues a business because of a workplace injury, and then that company sues you, employers liability insurance may help cover the claim.
Let’s say the loader on a backhoe injures one of your employees. The employee may sue the backhoe manufacturer for damages. But then the backhoe manufacturer may sue you, claiming you didn’t properly care for the equipment.
These lawsuits do happen. And if they do, employers liability coverage could help you cover the costs.
4. Dual capacity lawsuits
In some states, if one of your employees is injured by a piece of equipment you produce, you may be responsible for damages to the employee in two ways: First in your role as the employer, and then again in your role as the equipment manufacturer. Employers liability coverage may help protect you in your role as the equipment manufacturer from additional hefty damages.
5. Loss of consortium claims
If an employee’s family experiences a loss due to the employee’s injury or death, they may file a loss of consortium claim against you.
Compensation for these types of claims is above and beyond the disability and death benefits the family may receive from the workers’ compensation policy.
How much does employers liability insurance cost?
Employers liability insurance is included with NEXT’s workers’ compensation coverage.
Insurance quotes are free, easy, and completely customized for your business in about 10 minutes. Buy online and you’ll get immediate access to your certificate of insurance and 24/7 access to your policy, help and support.
Your exact cost will vary based on a number of factors, including:
- The number of employees at your business
- Your payroll
- Location of your business
- Your business operations
- The job functions of your employees
- Claims history
Learn more about workers’ compensation costs or start a free quote.
How does employers liability coverage work with Workers’ Comp?
If you own a business and have employees, you might be required by your state to carry workers’ compensation insurance. And in most states, employers liability insurance is already a part of your workers’ compensation policy.
In addition to liability claim protections around employee claims of sexual harassment, wrongful termination and more, workers’ comp can help provide business owners with protection for:
- Medical expenses, including examinations, treatments and rehabilitation.
- Lost wages to give employees time to recover from an injury before returning to work.
- Survivor and death benefits to support family members with help covering funeral costs and income replacement.
- Retraining to help employees who need to learn skills and enter a new field.
- Benefits for permanent injury for employees who can no longer work due to injury.
- Employers liability coverage to help protect your business from financial losses if an employee files a lawsuit against you.
How NEXT helps protect small business owners
NEXT makes it fast, easy and affordable to protect your small business — and you can do it all online.
We’ll ask a few questions about your business and give you a quote. You can select your coverage options and buy your policy in about 10 minutes. Your certificate of insurance will be available immediately, and you can access your policy 24/7 via web or mobile app.
If you have questions, our licensed, U.S.-based insurance professionals are available to help.
