What type of claims does employers' liability coverage cover?

Employers' liability coverage provides protection for claims that are not covered by workers' compensation (WC) laws. This type of coverage typically addresses situations where employees seek compensation for workplace injuries or illnesses that may not fall under the specific parameters of workers' compensation laws. For instance, employees can sometimes file lawsuits against their employers for negligence or other lapses that caused harm, which are not typically covered by the WC system.

In this context, employers' liability coverage fills the gap by offering defense costs and damage payments for these types of claims, offering employers a broader safety net against legal actions taken by employees due to work-related injuries or diseases. This aspect is crucial for employers to understand, as it highlights the importance of having this coverage to mitigate risks that workers' compensation insurance does not encompass.

Other options, such as claims subject to WC laws, product liability claims, and claims related to contractual obligations, do not pertain to the specific focus of employers' liability coverage, as they are generally addressed through other types of liability insurance or legal frameworks.