What Type of Coverage Does Employer's Liability Insurance Provide?

July 16, 2019

construction worker holding a pen and notepad outside near a tractor

image credit: TuiPhotoEngineer/shutterstock.com

Employers Liability Insurance (ELI) is coverage provided by the workers’ compensation policy for the insured (employer) for liability to employees for work-related bodily injury. This includes death, by accident or disease, other than liability imposed on the insured by a workers’ compensation law. These are the 4 common types of employers liability claims.


1. Third-Party-Over Action

A claim in which a contractor’s injured employee sues a third party (i.e. project owner), alleging the third party’s conduct contributed to the injury. This action occurs after the injured employee collects workers’ compensation benefits from the contractor. Such coverage would only be triggered if there is no contract of indemnity between the third-party (i.e. project owner) and the contractor. 

However, it is uncommon for there to be no such contract of indemnification in place between contractor and owner. As a result, these third party-over action claims tend to be passed back to the contractor, by prior agreement, and impact the contractor’s general liability policy. 

2. Loss Of Consortium

A legal action brought by the injured worker’s spouse or family. Usually the suit alleges loss of spousal services, including but not limited to companionship.

3. Dual Capacity

In this instance, the employer or business may have more than one relationship with the employee. For example, the employer could also be the equipment manufacturer, or owner of the premises. As such, the employer could be sued as the equipment manufacturer, as well as being liable under the workers’ compensation law. 

4. Consequential Bodily Injury Suits

Type of lawsuit where a family member of an injured employee alleges they suffered an injury (i.e. heart attack, stroke) as a direct result of the employee’s injury.    


For more information on ELI and other
types of insurance, you mat contact TSIB today at 201-267-7500.

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Topics: EPLI

Written by The TSIB Team