Some insurance policies have an employee-liability exclusion, which means that the insurance company will not provide coverage for any injuries sustained by an employee while on the job. This is because such injuries are typically covered by workers’ compensation laws, making it redundant for the insurance company to provide coverage for them. Essentially, the exclusion is a way of acknowledging that the injuries are already addressed by another law.
The employee-liability exclusion is a provision found in certain commercial general liability insurance policies. It specifically states that coverage is not provided for any injuries sustained by an employee or a member of their family during the course of their employment with the insured. The main objective of this exclusion is to exclude injuries that are already covered by workers’ compensation laws. For instance, if an employee gets injured while performing their job duties, they cannot file a claim against the employer’s liability insurance policy because workers’ compensation insurance would cover it instead. Similarly, if an employee’s family member gets injured while visiting the workplace, they cannot file a claim against the employer’s liability insurance policy because it would be considered an employee liability and excluded from coverage. The purpose of this exclusion is to avoid duplicate coverage for employee injuries and to establish workers’ compensation insurance as the primary coverage for such incidents.
An employee-liability exclusion is a clause in an insurance policy that excludes coverage for claims made against an employer by its own employees.
Insurance policies often include an employee-liability exclusion to prevent double coverage, as employees can typically seek compensation through workers’ compensation or other employment-related laws.
No, an employee-liability exclusion only means that the insurance policy does not provide coverage for claims made by employees. Employers are still responsible for providing a safe working environment and complying with employment laws.
Yes, employers can purchase separate insurance policies, such as employment practices liability insurance (EPLI), to provide coverage for claims made by employees.
Some insurance policies may include exceptions to the employee-liability exclusion, such as coverage for claims related to intentional acts or discrimination.
Yes, an employee can still file a lawsuit against an employer, regardless of the insurance policy’s employee-liability exclusion. The exclusion only affects the insurance coverage available to the employer.
The employer should consult with legal counsel to understand their obligations and potential liabilities. They may need to defend against the claim using their own resources or seek alternative insurance coverage if available.
Insurance policies are typically standardized contracts, but employers can negotiate with insurers to modify certain terms, including the employee-liability exclusion. However, insurers may not always agree to such modifications.
Employers can establish self-insured programs or captive insurance arrangements to provide coverage for employee claims, bypassing the need for traditional insurance policies.
Employee-liability exclusions are more commonly found in general liability insurance policies. However, they may also be present in other types of policies, such as professional liability or directors and officers liability insurance, depending on the specific terms and coverage provided.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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