Unraveling the Difference Between Employers Liability Insurance and Workers' Compensation

Unraveling the Difference Between Employers Liability Insurance and Workers’ Compensation

Unraveling the Difference Between Employers Liability Insurance and Workers’ Compensation

Although they both relate to protecting employees while they are at work, there is a significant distinction between employers’ liability insurance and workers’ compensation insurance. Business owners need to understand the difference to ensure they have the correct type of coverage for their employees. Here’s a breakdown of the two types of insurance and what they cover.


What is employers’ liability insurance?

Employers’ liability insurance provides an important layer of protection for businesses and their employees. By covering the costs associated with legal disputes, it helps owners safeguard against the potentially devastating financial impact of a workplace injury or illness lawsuit. With workers’ comp designed to help pay for medical bills regardless of cause, employers can explore this coverage option as part of creating a safe working environment – one that delivers peace of mind both today and in case something goes wrong tomorrow.


What is workers’ compensation insurance?

Workers’ compensation insurance covers employees for illnesses or injuries that occur in the course of their work. This type of coverage typically includes medical costs, lost wages due to time spent away from work, and disability payments if an employee cannot return to their job. Most states require employers to have this.


Freedom Coverage Insurance – Long Island New York Workers Compensation Insurance & Employers’ Liability Insurance

All businesses with employees are legally required to have workers’ compensation insurance. Employers’ liability insurance is not required by law but may be included as part of a business owner’s policy or purchased separately. Workers’ compensation pays benefits to employees who are injured or become ill as a result of their job. Employers’ liability insurance protects businesses from lawsuits filed by employees who allege that their injuries or illnesses were caused by the employer’s negligence. Do you need help determining which type of coverage is right for your business? Freedom Coverage Insurance offers free quotes on employers’ liability and workers’ compensation insurance. Get your free quote today!


Josh Mitchell
CEO Freedom Coverage Insurance