Our Bronx employment law firm helps clients who have questions about their employers’ liability insurance. This insurance covers employer liabilities that are not addressed in workers’ compensation claims, which is when an employee is hurt while at work.
A History of Employers’ Liability Insurance
Coverage for American workers has been in existence for nearly 100 years. However, it was previously grouped with errors and omissions and commercial general liability within workers’ compensation policies in Part II. Part II coverage includes protection for the employer against liability in the event of injuries or even the death of a worker due to on-the-job risks. Emotional distress, if it manifests physically, is also included in the CGL context of a worker’s compensation policy.
Employment Practices Liability Insurance
Employment practices liability insurance protects the employer and all of his or her assignees in the event of a lawsuit. Officers, spouses, other employees, partners, directors, officers, and managers are included in coverage in the event of the following types of injuries:
- Wrongful acts,
- Wrongful termination,
- Employment actions,
- Negligence related to hiring or supervision,
- Breach of an employment contract,
- And other inappropriate acts, such as discrimination.
For additional details related to exclusions, contact our Bronx employment law firm.
Obligation of the Insurer
The insurer is required to pay for the defense of the employer with one exception. If two employers, such as a general employer and a special employer are both named, the policy for the general employer does not cover the special employer in the event of a civil lawsuit. However, if the special employer is listed in the policy, the insurer might be obligated to defend him or her, depending on the facts surrounding the case. Despite this, coverage rarely includes intentional acts, and some states specifically prohibit it. Even so, the employee could be covered personally, but the coverage does not extend to indemnification.
Contact Our Bronx Employment Law Firm
At the Law Offices of Delmas A. Costin Jr., we understand how to sort out the confusing aspects of workers’ compensation claims and employment liability coverage. For answers to your questions, you can reach our Bronx employment law firm at (877) 440-0854.