When situations arise where an employee sustains an on-the-job injury or occupational disease that happens to fall outside the workers' compensation statue, employees have successfully sued their employer. Since workers' compensation does not protect the business owner from suits brought by employees, Employer's Liability coverage (also known as Stop Gap coverage) can be used to protect the insured.
Employer's Liability coverage does not allow for an employee to recover twice for the same injury or occupational disease. It may appear, for example, an employee can collect damages from a third party and also collect workers' compensation under his employer's policy. Not so, as a provision is made to correct a double recovery situation.
Employer's Liability protection is limited to injuries or occupational disease during employment just like workers' comp. However, Employer's Liability coverage exists to protect the employer against those claims that do not fall under the workers' compensation statue.
To learn more about your insurance protection, visit our Learning Center or contact one of our licensed advisors. We're here to help!