Workers' Comp & Employers Liability Policy
Which claim is covered by Part Two (Employers Liability Insurance) of the standard workers compensation policy?
Answer
A third party's suit to recover from the employer damages it owes for injury to the employee
Part Two B.1 covers damages 'For which you are liable to a third party by reason of a claim or suit against you by that third party to recover the damages claimed against such third party as a result of injury to your employee.' Statutory benefits payable to an injured employee belong to Part One, and Part Two excludes wrongful termination of employment and other personnel practices (C.7) and punitive or exemplary damages awarded for injury to an employee who was employed in violation of law (C.2).
Source: NCCI Workers Compensation and Employers Liability Insurance Policy WC 00 00 00 C (Ed. 1-15, posted by the N.C. Rate Bureau; same wording in WC 00 00 00 A as posted by the Minn. Dept. of Commerce), Part Two B.1, C.2, C.7
Not the answer
- Benefits required by the state workers compensation law and payable to an injured employee under that statute
- An employee's claim against the employer seeking damages for the wrongful termination of his or her employment
- Punitive or exemplary damages awarded for injury to an employee who was employed in violation of law
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