All responsible business owners should have Employers’ Liability Insurance. It is designed to cover costs if an employee suffers a workplace injury that is not fully covered by Workers’ Compensation Insurance. In fact, in all but a few states (North Dakota, Ohio, Washington, and Wyoming), Workers’ Comp includes Employers’ Liability Insurance. There are typically two parts to the Workers’ Comp Insurance policy:
- Part A covers partial lost wages and all medical expenses and employees covered by part A cannot sue their employers
- Part B (Employers’ Liability Insurance) covers employers for lawsuits resulting from employee injuries if, for example, an employee claims that employer negligence is responsible for the harm that came to them. Part B will cover the employer not only for court-awarded settlements for injury, disease, or wrongful death but for attorneys’ fees and court costs.
Because personal injury court awards run high, without Employers’ Liability Insurance, your company — depending on its size and resources — could be wiped out by a single settlement.
Why Blue Lion Insurance Advisors, LLC Are Invaluable to Business Owners
Working with our insurance advisors gives your company many advantages. For one thing, once we meet with you for a free consultation and come to understand the unique aspects of your business, we will know precisely which insurance policies your New Jersey enterprise needs and which ones it can do without.
For another, because we are not affiliated with any one insurance provider, we are able to make your business our top priority. We will find you the most inclusive, cost-effective policies regardless of which insurance company sells them. Contact us at (732) 649-1600 or online to ensure that your business is fully protected.
Examples of Claims Your Employers’ Liability Insurance Can Cover
While Workers’ Compensation is highly beneficial to both employees and employers, you will need Employers’ Liability Insurance to cover the following types of claims:
- Third-party lawsuits: Such lawsuits occur if, for example, an employee is injured by a defective paper cutter, copier, or any other piece of company equipment. While the worker may sue the manufacturer for selling a defective product, they may also sue their employer for knowing about the defect and failing to repair or replace the equipment.
- Loss of consortium or companionship lawsuits: These lawsuits can be filed by spouses or other close relatives for the losses they incur if a family member is seriously injured, disabled, or killed due to a workplace injury. Their losses may consist of loss of intimate marital contact, loss of financial support, or loss of guidance and emotional support (e.g by a parent).
- Consequential bodily injury lawsuits: Such lawsuits may be filed by a non-employee who is injured while caring for a mate or adult child who had a workplace accident (e.g. herniating a disc while helping the injured party to rise). A consequential bodily injury lawsuit may also be filed if the employee falls and fractures a wrist as a result of being unstable after a hip injury at the office.
- Dual-capacity lawsuits: Dual-capacity lawsuits can be filed against an employer who is, for example, also the owner of the workplace property. In this case, an injury that results from incorrectly installed windows or improper electrical wiring may be the focus of a premises liability lawsuit in which the property owner/employer is the defendant.
Don’t Confuse Employers’ Liability Insurance with EPLI
Employers’ Liability Insurance is not the same as Employment Practices Liability Insurance (EPLI). The former provides additional coverage for employee injuries, illnesses, or death, while EPLI covers employee lawsuits claiming discrimination, sexual harassment, breach of contract, or wrongful termination. As an employer in New Jersey, although you are not required to have EPLI, it is definitely a wise investment.
Contact Our Experienced Employers’ Liability Insurance Advisors Today
As a business owner, you have no doubt put your heart and soul into establishing your business and keeping it thriving. Make sure you do everything possible to keep it safe from external and internal dangers by consulting with our talented team of insurance advisors. Make your insurance coverage Blue Lion Strong™ by contacting us before you have to.