what is employers liability insurance

Employers liability insurance is a type of insurance policy that helps pay a business owners costs related to a lawsuit resulting from an employees work-related injury or illness. This coverage is typically part of a workers compensation insurance policy, but in some states, business owners may have to get it separately. Most states require employers to carry workers’ compensation insurance, which provides employees benefits to help them recover from work-related injuries or illnesses, helping cover their costs for medical bills, ongoing care, and lost wages. However, employees can sue their employers if they feel like the workers’ compensation benefits were inadequate, and this is where employer’s liability insurance comes in. If an employee sues their employer, it can help cover the legal costs, such as attorney fees, settlements, and judgments. It is important to note that employers liability insurance does not cover legal costs from employee lawsuits charging discrimination, sexual harassment, or wrongful termination. To cover these situations, an employer would need to purchase a separate type of policy called employment practices liability insurance (EPLI) .