What is the difference between employers liability ins. and workers compensation ins.?
Employee Liability is when someone other than an employee is harmed. Workers Comp is used when the employee is hurt on the job. Of course this is a very simiplifed form.
Employers liability is usually Part 2 of a standard Workers Compensation policy. Part 1 of the policy provides for workers compensation insurance. This is, basically, a "no-fault" type of coverage. An injured employee does not have to sue his employer if he is injured on the job in order to collect benefits. The WC insurance pays for medical expenses and lost wages. It does not pay for "consequential" damages such as pain & suffering, loss of consortium, etc.
Employers liability coverage pays for other damages the employer may be found legally responsible for due to an employee's injury. These may include wrongful death, damages for care or loss of services, consequential injury to a spouse, child ,etc. These would result from a lawsuit filed by the employee or a third party. Because workers compensation is designed to be a "no-fault" type of coverage, it is usually very difficult for an employer to be found liable for these consequential damages. Generally, the employer would have to intentionaly injured an employee or have forced the employee to perform a certain task that would almost certainly injure the employee.
Employers Liability should NOT be confused with General Liability as it involves only injuries to employees. General Liability insurance is coverage for a business owners liability to third parties (not employees) for customers falling on the premises, defective products, etc.
Basically, employer's liability insurance is insurance that protects the employer from liability to another person for injury caused by the employer's negligence, including the negligence of its employees. Under the liability policy, the employer is the insured and pays the policy premium.
Worker's compensation insurance is insurance mandated by state law that requires the employer to insure its employees for on-the-job injury, death, or disability. The requirements vary depending on the state law. For example, in Georgia, an employer doesn't need to get worker's comp insurance, unless it has 3 or more employees. Under the worker's comp policy, the employees are the insureds, but the employer pays the premium.
Workman's comp is there to provide relief to the employees in case of interruptions to the pay check due to job related injuries. Another similar kind of insurance is the disability insurance. Both of these are bebefits to the employees.
Liability insurance is there to protect the employer from being sued for whatever reasons.
Employers liability would be if your employee is hurt on the job, killed maybe, and his WIFE sues you for being negligent. It's really just a technicality in most states, and just covers the attorney fees for your defense. You usually buy it in conjunction with Workers Comp coverage, in case your employee is injured outside of the state he lives in, works in, or your business is domiciled in. It typically has a limit of 100/500/100 or 500/500/500.
Workers comp is a vague coverage, that pays medical expenses and lost wages, as required by statute (which means it's always changing per case law), regardless of fault, for any employee injured on the job. Here's the important part: THERE IS NO LIMIT OF COVERAGE, yep, that's right, it's unlimited, except by case law.
W/C - Employer's legal obligation under worker's compensation law. This coverage is considered the exclusive or sole remedy for recovery by an employee for injuries and disease arising out of and in the course his or her employment.
Employer's Liability - Employer's legal liability, determined by negligence, for injury to an employee in a situation not covered under W/C or an action taken by a third party.
Answers:
it's self explanatory really