how employers liability insurance works
the majority of private sector employees are covered by workers compensation laws established at the state level federal employees work under federal workers compensation laws states require most employers to carry workers compensation insurance workers compensation provides some level of coverage for medical expenses and lost wages for employees or their beneficiaries when an employee is injured falls sick or is killed as a result of their job 12 there is no need for the employee to sue the employer to establish fault in order to qualify for workers compensation benefits however if an employee feels that workers compensation does not adequately cover their loss perhaps because they feel their employer s negligence caused their injury they may decide to sue their employer for punitive damages arising from their situation for things such as pain and suffering this is where employers liability insurance comes in designed to deal with expenses that fall outside the realm of the workers compensation statutes or general liability insurance it provides additional protection against financial loss for the company or business employers liability coverage is typically purchased along with workers compensation in fact employers liability insurance is often called part 2 of a workers compensation policy part 1 of the policy is the actual workers comp which pays for medical death expenses and partial lost wages from work related injuries and illnesses part 2 would be the employers liability coverage protecting the business from claims for additional damages and compensation 3the average additional sum a firm without employer liability insurance protection would have to pay in court cases according to the hiscox guide to employee lawsuits 4