| When situations
arise where an employee sustains an on-the-job
injury or occupational disease that happens to
fall outside the workers' compensation statue,
employees have successfully sued their employer.
Since workers' compensation does not protect the
business owner from suits brought by employees,
Employer's Liability coverage (also known as Stop
Gap coverage) can be used to protect the insured.
Employer's Liability coverage does not allow
for an employee to recover twice for the same
injury or occupational disease. It may appear,
for example, an employee can collect damages
from a third party and also collect workers'
compensation under his employer's policy. Not
so, as a provision is made to correct a double
recovery situation.
Employer's Liability protection is limited
to injuries or occupational disease during employment
just like workers' comp. However, Employer's
Liability coverage exists to protect the employer
against those claims that do not fall under
the workers' compensation statue. |
