Employers liability provides coverage for four types of claims
1: Third party-over: Provides coverage when you’re sued by a third party as a direct result to an inury to an employee. For instance employee is injured using a large piece of production equipment; the employee sues the manufacturer of the machine for lack of safety protection. During the investigation, it is found that you altered the machines rendering the safety mechanisms ineffective; thus the manufacture sues you . This claim would be excluded on your commercial general liability policy but picked up under your employers’ liability
2. Loss of Consortium: Your injured employees family may suffer in ways that aren’t compensated or even compensable by the workers comp comp coverage part. These include additional cost to hire outside help to provide the services previously provided by the injured employee, the loss of companionship and in some jurisdictions, claims for emotional injury.
3. Consequential bodily injury: A work-related disease subsequently spreads to another member of the immediate family.
4. Dual Capacity: You may have business related contact with your employees outside of or in addition to the employer-employee relationship. These additional relationships can be as a products supplier, service provider or because you on the premises. Such dual persona creating this increased contact may subject you to liability for injury to an employee that may occur at work but which does not necessarily arise out of and in the course and scope of employment. Dual persona relationships create obligations to the worker independent of those imposed on you as the employer. In essence the exclusive” no fault” nature of workers compensation protection is waived in situations where you could be liable to the general public for the same injury. For example, a ladder manufacturers can be held liable as the employer and as a manufacturer if the ladder the employee is using on the job collapses causing the worker to be injured.