One part of a workers compensation policy that provides employers with coverage for lawsuits filed by injured employees. Employers’ liability insurance kicks in when a worker files a compensation suit under common law for the damages he or she suffered.
Because employers are responsible for the health and safety of their employees while at work, The Employers’ Liability Act requires all businesses to carry at least a minimum level of insurance to cover them in case of claims. However, this type of policy covers only injuries sustained on the job site.