Most employers know that workers compensation insurance is the single most important insurance coverage you can have if you have any employees. However, not all employers know that employment practices liability insurance can be just as important. Even if you only have one employee liability related to worker injury is a genuine managerial concern.
Workers compensation insurance is used when an employee experiences a work-related injury or illness. This coverage will pay for any of the employee’s medical costs as well as many lost wages. What workers compensation insurance won’t cover, however, are any claims related to any real or perceived employer negligence that may have been the cause of the accident that caused the employee injury.
Even if their medical costs are covered employees can still file a lawsuit for any additional damages they feel were caused by their employer’s negligence. From a general management perspective, the costs associated with employee liability can be substantial.
Potential Employer Liability Legal Costs
Settlements or Judgments
Employer liability insurance will help cover the costs associated with any of the above liabilities and can help your business survive costly lawsuits. Without this coverage one lawsuit could cost several hundreds of thousands of dollars and possibly bankrupt your entire business.