Employers liability insurance is a part of workers’ compensation insurance that can protect employers from financial loss if a lawsuit is brought against them for a workplace injury or illness.
While it used to be a standalone option for coverage by U.S. insurance companies, it’s now more common for employers liability insurance to be included with workers’ comp coverage. Workers’ compensation insurance offers broader coverage beyond employers liability coverage for work-related illness and injury. It can provide financial help for lost wages, medical treatment, death/survivor benefits and more.
Get a free quote for workers’ comp online with NEXT.
Employers Liability insurance vs. Workers’ Compensation: What can be covered?
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|Permanent injury benefits|
Employers liability insurance is a type of insurance coverage included with workers’ comp that can help with lawsuits connected to work-related injuries or illnesses.
It can help protect a business financially if an employee files a lawsuit claiming the employer’s actions (or failure to act) caused their injury or illness.
Employers liability coverage can help pay for expenses related to lawsuits brought against your business, such as:
Five common types of lawsuits relate to workplace injuries. Employers liability coverage within workers’ comp might help with accusations of:
We know lawsuits can be disruptive to your business. NEXT customers have claims advocates and specialists on call who can offer support.
Reach out for help as soon as possible if a claim of work-related injury or illness is filed against you or your business.
According to the U.S. Bureau of Labor Statistics, more than 2.5 million nonfatal workplace injuries and illnesses and around 5,000 workplace fatalities are reported by private U.S. businesses each year.
Without adequate insurance, a single accident could significantly impact the bottom line or livelihood of a business if it’s involved in a lawsuit.
Employers liability insurance can offer important benefits for any business with employees.
Workers’ compensation coverage provides a safety net for employers and employees when workplace injuries occur.
In addition to employers liability coverage, workers comp can help business owners cover the expense of medical bills, lost wages and other financial losses for their employees after a work-related injury or illness.
Most states require workers’ comp for businesses with employees. Business owners can also opt in to reap the protection of a workers’ comp policy for themselves.
Three main types of business protection are offered by workers’ comp:
Businesses with employees are usually required to carry workers’ compensation insurance in most states. And fines or felony charges may apply when businesses don’t comply with local workers’ compensation laws.
Some business owners, including self-employed entrepreneurs and sole proprietors, get workers’ comp insurance even if it’s not required by law. It can help cover lost wages (unlike personal health insurance) and medical care if an injury occurs at work.
The cost of workers’ compensation insurance can start as low as $12.20 monthly for low-risk businesses.
Monthly premiums for individual businesses are determined by factors like the type of work you do, where the business is located and how many employees you have.*
NEXT creates customized, affordable insurance packages for small business owners.
In addition to workers’ compensation insurance (which includes employers liability coverage), we also offer: