When employers consider protecting their business and employees, one of the first things that comes to mind is workers compensation insurance. This type of insurance is crucial for covering medical costs and lost wages for employees who are injured on the job. However, what many business owners don’t fully understand is that within their workers compensation policy lies another important element—Employers Liability coverage.
This article will break down what Employers Liability coverage is, provide real-world claim examples, explain certain certificate of insurance practices, and highlight how this coverage works specifically in New York. We’ll also introduce you to BGES Group, a leading insurance agency in the tri-state area, that can assist business owners, especially those facing policy cancellation.
What Is Employers Liability Coverage?
Employers Liability coverage is a standard component of most workers compensation insurance policies. While workers comp handles statutory benefits (like medical expenses and lost wages), Employers Liability protects the business if an employee decides to sue for damages that go beyond what workers comp covers.
This coverage acts as a safety net in cases where an employee believes the employer’s negligence contributed to their injury or illness. The key here is that Employers Liability coverage is triggered when an injured employee (or their family) sues the employer directly, rather than just collecting benefits under the state’s workers compensation laws.
Common Legal Scenarios Where Employers Liability Coverage Is Needed:
- Loss of consortium claims filed by family members.
- Third-party-over actions (where another party sues the employer after paying a claim).
- Dual-capacity claims, where the employer is also being sued as the manufacturer or provider of a faulty product.
This protection is essential because even if a company is compliant with all state workers comp laws, lawsuits can still arise. Employers Liability helps pay for legal defense costs, settlements, and judgments.
If you’ve ever typed “What is Employers Liability insurance?” into Google, now you have a solid answer.
Three Real-World Examples of Claims Covered
- Third-Party-Over Action: An employee is injured while using a piece of machinery and collects workers compensation benefits. They then sue the machine manufacturer for additional damages. The manufacturer, in turn, sues the employer claiming improper training caused the accident. Employers Liability coverage would help defend the employer and cover damages if the court rules against them.
- Loss of Consortium Claim: An employee is permanently disabled due to a workplace accident. While workers compensation covers the medical costs and lost wages, the employee’s spouse files a lawsuit for loss of companionship. This type of claim, though not covered under standard workers comp, would be handled by the Employers Liability portion.
- Dual-Capacity Lawsuit: A company that manufactures chemicals for both internal use and for sale to third parties exposes a worker to hazardous materials. The worker is injured and receives workers comp benefits. Later, they sue the company not just as their employer but also as the product manufacturer. Employers Liability coverage would come into play in this dual-capacity situation.
For anyone searching “examples of Employers Liability claims”, the above real-world cases should offer valuable clarity.
Certificate Holders and Requested Limits
It’s common practice for businesses to provide certificates of insurance (COIs) when working with other entities like general contractors, landlords, or government agencies. These certificate holders often request that the Employers Liability limits be listed at $1,000,000.
Why this number? It has become a standardized benchmark and is considered sufficient by many certificate holders for general liability risk. The standard Employers Liability policy typically includes these three limits:
- Bodily Injury by Accident: $1,000,000 each accident
- Bodily Injury by Disease: $1,000,000 policy limit
- Bodily Injury by Disease: $1,000,000 each employee
These figures are commonly found in online searches such as “recommended limits for Employers Liability coverage”.
Why New York Businesses Don’t Need to List Limits
In most states, listing the $1,000,000 limit on a certificate of insurance satisfies the requirement. However, New York is a unique case. That’s because most New York workers compensation policies include an endorsement known as the “Limit of Liability—New York”, which removes the dollar limit entirely, making the coverage unlimited.
So if you’re a New York business owner and a certificate holder demands a $1,000,000 limit, it’s not necessary to update your policy just to meet that request. The policy already provides broader protection than what the certificate shows. This is important to know if you’ve ever Googled “Do I need $1,000,000 Employers Liability in New York?”
BGES Group: Your Tri-State Workers Comp Specialists
If you’re in New York, New Jersey, or Connecticut and dealing with rising premiums or non-renewal of your workers compensation policy, BGES Group is here to help. We are one of the tri-state area’s leading specialists in workers compensation insurance, with a focus on helping businesses that are struggling to find affordable and reliable coverage.
Our team has extensive experience placing coverage for all kinds of industries—construction, manufacturing, hospitality, transportation, and more. Whether your policy is being canceled due to high losses, employee misclassification, or other underwriting concerns, we have access to multiple carriers that are open to writing even difficult risks.
Searching online for “best workers comp insurance broker in NY”? Look no further.
We Make It Easy to Get Covered Again
At BGES Group, we:
- Help you understand and manage your workers compensation and Employers Liability exposure.
- Shop your policy with top-rated carriers.
- Offer solutions even if you’ve been canceled or non-renewed.
- Provide fast turnaround on certificates of insurance.
- Help resolve audits and classification issues.
We’ve helped hundreds of businesses stay in compliance and get back on their feet after facing cancellation or sharp premium increases. If you feel like you’re out of options, give us a call.
Contact BGES Group
Contact: Gary Wallach
BGES Group Phone: (914) 806-5853
Email: bgesgroup@gmail.com
Website: www.bgesgroup.com
Don’t wait until your policy lapses or a certificate request stalls your business. Contact us today for a no-obligation consultation.