Employers Liability

The Limits And Benefits Of Employers Liability Insurance

We live in a litigious world. Lawsuits are more and more common, as are insurance policies to protect against a variety of kind of suits. Public liability insurance, product insurance, and employers liability insurance are just such kinds of policies.

Public liability insurance covers employers in the case that their place of business is the cause of harm to someone not directly employed by the business. The most common example would be in a restaurant or other place of business where the public are often present.

Product insurance covers a huge range of products, in case they should cause harm to those who buy them. For example, it would cover such things as medical devices, tobacco, recreational equipment, mechanical and electrical products, chemicals and pesticides, medical equipment, and more.

Employer liability insurance developed to protect the assets of businesses whose employees might be injured or become ill as a result of their work. However, most insurance companies write in exclusions, so that employers liability insurance does not cover such things as: sexual harassment, wrongful termination, discrimination, statue violations, negligent hiring/ supervision/ promotion/ retention, disabilities, breach of contract, loss of consortium, emotional distress, invasion of privacy, drug testing, mental anguish, libel, slander, or wrongful arrest.

Often, these three kinds of insurance (public, product, and Employers Liabilty) are combined under an umbrella policy. This kind of policy can be drafted by almost any insurance company. However, federal regulations exist to determine which companies comply with federal laws about insurance.

Businesses with a large amount of capital, for example multi-million dollar businesses, can easily take on the cost of any claims that might arise against them. However, for small businesses, even one lawsuit could be disastrous for the company. That is why employers liability is so important for small business owners, particularly those whose employees are engaged in potentially dangerous work. For example, construction workers spring to mind. Anyone who employs workers would do well to have employers liability insurance.

The regulations for employers liability insurance vary from state to state. In some states, public, product, and employers liability insurance are all compulsory. In other states, they are all option. However, no matter what the state regulations require, it makes sense for businesses to have insurance as a safeguard against litigation.