Workers compensation provides medical, health and lost-time compensation for employees who suffer work related injuries or illnesses.
Sounds straight forward enough, right?
Suppose you’re a healthcare worker in one of our great Tucson hospitals, and you accidently contract hepititus from a needle stick. Your covered by workers compensation. Now, suppose you go home to Sahuarita and pass the illness to your spouse. The spouse gains coverage through employers’ liability. This claim type is Consequential Bodily Injury.
In some states, Loss of Care and Services claims can be made. Spouses claim "loss of consortium" or family members claim a loss for caregiving by the injured parent. Employers’ liability responds to these claims
Under all these described circumstances, employers’ liability pays for the employer’s legal expenses too.
Employers’ liability covers aspects of workers compensation which can be third party claims, a fancy term for someone other than the employer or employee, such as a family member who becomes injured or ill as a result of the employee’s exposures on the job.
Employers’ liability covers some other unusual circumstances. For example, an employee is injured by his employer’s product. Perhaps a heating system manufacturer uses his own product in his office. A maintenance staff member gets an electrical burn because a cut-off malfunctions. The policy pays as though it were workers’ compensation first, and then the employer’s liability coverage handles the incident like it was a third-party products liability claim. This type of claim is known as a Dual-Capacity claim.
As all-inclusive as the workers compensation policy tries to be, unusaual circumstance justify the need for employers’ liability. Since general liability policies usually exclude employee injuries or illnesses, work comp needed to fill this gap in coverage.
Call the 1 st Insurance Center of Green Valley Agency to explain in further detail about workers compensation and employers liability policies. And remember: a safe work place is the best employee benefit.