Policy Differences:
Workers' Compensation vs. Employer's Liability

August 5, 2009
By: Brandon Sutkowi

Most people are familiar with the term "Worker's Compensation", but the actual insurance policy also typically includes the title "Employer's Liability". Just what is the distinction between the two terms and the coverage provided?


Worker's Compensation, in most states, is a type of law that requires employers to pay the medical expenses, lost wages and other expenses such as rehabilitation incurred by employees who are injured while on the job. Employers generally provide these payments by purchasing worker's compensation insurance for their employees.

Employer's Liability is an additional coverage provided in a workers compensation policy.

This portion of coverage responds in the event that an employee or his/her family sues for payments in addition to those provided under workers compensation laws.

If an injured worker's family members can prove that the business owner is legally liable for a work-related injury or illness, they may be able to collect damages. In such cases, the Employer's Liability coverage provided by a workers' compensation policy may pay family members for

their "loss of consortium" or access to the injured worker

damages to spouses or relatives that result from the injury to the spouse or relative.

Disclaimer: The brevity of this article prevents comprehensive consideration of all issues. The information contained herein should not be considered as insurance advice; such is expressly disclaimed. For specific matters, consult with your insurance agent.

Brandon Sutkowi, Personal Lines Manager
Meadowbrook Insurance Agency
I invite your questions and feedback

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