Employers Liability and Workers Compensation

Did you know that there are several parts to workers compensation insurance?

Part one is Workers compensation insurance

Workers compensation insurance is what we are most familiar with and covers injuries to your employees when they get hurt at work, this part has no limit.

Part Two is Employers liability insurance

Employers liability insurance is intended to protect an employer from legal liability arising out of employee injury, this part does have a limit and you will see the limit under the coverages section on your workers compensation policy.  The default coverage amount for the state of Florida is:

$100k each accident, $100k each employee, $500k policy limit

Other options available are 500/500/500, 1mil/1mil/1mil with most carriers.  Some carriers offer even higher limits.

Some common Employers liability claims are:

Third party over actions– A lawsuit filed by a third- party seeking indemnity because it was held liable for an employee’s injury.  For example, an employee was injured using a piece of machinery that an employer had not properly maintained.  The employee may sue the manufacturer of the equipment who would in turn sue the employer for contributory negligence.

Loss of Consortium– A lawsuit typically filed by an injured employees’ spouse for the loss of services of his or her spouse who was injured during employment

Consequential bodily injury- A lawsuit filed by a family member for injuries suffered as a consequence of the employees’ injury.  For example, the spouse of a severely injured employee who suffers a heart attack upon learning of the injury of his or her spouse.

Want to Learn more about Workers Compensation and Employers Liability Insurance, visit our Workers Compensation page.