An insurance policy that provides coverage for an employer’s two key exposures arising out of injuries sustained by employees. Part one of the policy covers the employer’s statutory liabilities under workers compensation laws and part two of the policy cover liability arising out of employees work related injuries that do not fall under the workers compensation statute.
Example:
• If your employee gets hurt while operating a machine at the factory, he can claim worker’s compensation benefits to cover his medical bills and lost wages. If the employee sues you for negligence or intentional harm, he can claim employer’s liability damages to compensate them for his pain and suffering.