What is typically covered under employer's liability insurance?

Employer's liability insurance is specifically designed to protect employers against legal costs and damages resulting from workplace-related injuries or illnesses incurred by employees. This type of insurance comes into play when an employee sues their employer for negligence after suffering a work-related injury or illness. It covers claims for compensation in cases of workplace injuries and also includes protection against wrongful death suits that may arise when an employee dies as a result of their job duties.

The focus of this type of coverage is on the liabilities that arise from the employer-employee relationship regarding occupational hazards, ensuring that employers have financial protection if they face lawsuits from their employees for incidents occurring during the scope of their work. This makes it a crucial component of a comprehensive worker's compensation program, alongside workers' compensation insurance itself, which generally covers medical expenses and lost wages due to workplace injuries without regard to fault.

Other options refer to coverage that falls outside the parameters of employer's liability insurance. For instance, employee theft relates to crime insurance, general property damage pertains to property coverage, and health insurance for employees is a separate health benefits program aimed at covering medical expenses, which is not included under employer's liability insurance.