Which liability insurance protects employers from claims not covered by workers' compensation?

• A. Personal Liability Insurance
• B. Product Liability Insurance
• C. Employer Liability Insurance
• D. Public Liability Insurance

Answer: (C)

Employer Liability Insurance is designed to provide coverage for employers against claims made by employees that are not covered by workers' compensation. While workers' compensation insurance generally covers medical expenses and lost wages for employees injured on the job, there are specific situations where an employee might seek damages beyond what workers' compensation offers. This type of insurance comes into play when an employee files a lawsuit alleging negligence on the part of the employer, such as failing to provide a safe working environment.

This insurance is especially important because it protects employers from significant financial risks associated with these claims. For example, if an employee sustains an injury due to unsafe working conditions and chooses to sue the employer instead of filing a workers' compensation claim, employer liability insurance would help cover legal costs and any potential settlements or judgments.

Other types of liability insurance, such as personal, product, or public liability insurance, focus on different aspects of liability and do not specifically address the needs and risks related to employer-employee relationships in the context of occupational injuries. Therefore, recognizing the specific purpose of each type of liability insurance is crucial in understanding their roles within the broader context of risk management for employers.