Our 9-to-5 jobs can often seep into our daily lives, becoming less of a means to accomplish what we want in life and more of a life in itself.
While we attempt to draw the line between work and life, certain situations cause the lines to blur or fade altogether. One such circumstance? A work-related injury.
The U.S. Bureau of Labor Statistics recorded more than 2.5 million nonfatal injuries and illnesses in 2023, and more than 5,000 work-related injuries resulted in fatalities.
Workers’ compensation coverage often covers our work-related injuries, but what happens if our employers were liable for our accidents while on the job? Is workers’ compensation coverage the only route, or is there more to the story?
Keep reading as our skilled workers’ comp lawyers help you make sense of the questions surrounding workers’ comp coverage, employers’ liability insurance, and its impact on your injury!
Employers’ Liability Insurance vs. Workers’ Compensation
Understanding a work-related injury and coverage limitations starts with knowing the difference between employers’ liability insurance and workers’ compensation.
What is Employers’ Liability Insurance?
Employers’ liability (EL) insurance is a policy bought by employers that handles claims from workers who have suffered a job-related injury not covered under workers’ compensation. The insurance policy is designed to protect employers from financial losses when they are found to be legally responsible for a workplace accident.
This may include negligence, such as failing to maintain equipment or upholding a safe working environment.
Employers liability insurance typically covers aspects related to a lawsuit, such as:
- Damages
- Court judgements
- Court fees
- Settlements
- Other outstanding legal costs
What is Workers’ Compensation Coverage?
Workers’ compensation coverage is a type of insurance policy that provides employees with certain benefits in the event they suffer from a work-related injury or illness. Even if the accident was the employee’s fault, excluding intoxication or if they fall under the umbrella of an independent contractor, they have the right to seek coverage benefits.
Workers’ compensation coverage may include:
- Medical expenses
- Ongoing treatment
- Disability benefits
- Death and survivor’s benefits (such as funeral costs)
- Lost wages
- Legal settlements and judgments
- Court costs
The main factor that separates EL coverage from workers’ comp coverage lies in its protections – workers’ comp covers the employee, while employers’ liability protects the owner or business.
Understanding Claims: What Does Employer’s Liability Insurance Cover?
Workers’ compensation coverage provides benefits to those who seek coverage in the aftermath of a workplace accident or illness. Employers’ liability coverage, on the other hand, helps to cover four types of claims: third-party lawsuits, loss of consortium lawsuits, consequential bodily injury lawsuits, and dual-capacity lawsuits.
Third-Party Lawsuits
Third-party lawsuits are those filed by a third-party entity involved in a job-related accident. For example, if an employee is injured by defective equipment while performing their duties, they can sue the manufacturer. The manufacturer can, in turn, file a lawsuit against the business if they believe it was due to poor maintenance and not the product.
Loss of Consortium Lawsuits
Family members typically file this type of lawsuit in the event of the death or disability of the employee due to a work-related accident. The family could sue the employer if negligence played a role in the resulting employee’s death or disability and seek compensation.
Consequential Bodily Injury Lawsuits
This type of lawsuit is brought about by causation of a work-related incident. For example, suppose an employee suffered a severe injury due to a work-related accident, and an immediate family member suffered from a heart attack due to the stress of the situation. In that case, that family member can sue the employer or business for damages.
Dual-Capacity Lawsuits
Dual capacity lawsuits allow one entity or person to operate and sue another under multiple headings. For example, an employee can sue their employer after a work-related accident under the heading of an employer and a premises owner.
An employer can hold multiple headings, such as a product manufacturer, service provider, or landlord, among others.
Talk to a skilled workers’ compensation attorney to determine if your job-related accident involved negligence on behalf of your employer and how to seek justice and compensation amid a workers’ compensation claim.
Seek Guidance on the Legal Processes with Help from Hoffman Law Firm
Understanding the legal processes and language can be confusing, especially in the aftermath of healing and treating a work-related injury.
Is a workers’ compensation claim enough? Was negligence involved in your accident? It may be time to leave it to Hoffman.
With offices located in Charleston and Georgetown, SC, we support accident victims throughout the Palmetto State. Our workers’ compensation attorneys near you have extensive experience handling a wide range of cases.
We have established a reputation for success, as well as excellent service! To meet with an experienced workers’ comp lawyer, schedule your free consultation today.
