Employer’s Liability Coverage

Most states require some form of workers compensation insurance and carry different laws regarding benefits.

Work Comp coverage offers benefits to employees of companies and must be purchased by employers.

A workers compensation policy has three parts; state benefits, referred to simply as work comp, employer’s liability (discussed here), and “other states” benefits.

Coverage part 2 of the workers compensation insurance policy details the employer’s liability section of the policy.


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There are two instances where employer’s liability would be necessary:

First, an employee may reject coverage under part 1 of the work comp policy, or for some reason, may not be able to collect for benefits under part 1.

An example may be when someone is performing the work of a household employee. This type of work can be excluded for coverage under certain state laws.

Another situation would arise when a surviving spouse or dependent sues the employer for damages as a result of the death of their family member.

For example, if your spouse were to die as a result of an explosion at a factory, you may retain the right to sue the employer for damages.

This concept is known as loss of consortium, which can be described as the loss of the normal benefits one would receive in the event a relationship they were in ceased.

As mentioned earlier, each state has different laws, so be sure to contact your employer or state department of insurance to determine what benefits you may be eligible for as a result of a work-related accident.

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