Excess Employers Liability Insurance: Top 5 Things To Know

Excess Employers Liability Insurance: Top 5 Things To Know

With the way the world of business works changing almost every day, it’s important for employers to keep track of their liability insurance needs. That’s why in this article, we take a close look at excess employers liability insurance and provide you with some much needed insight on what you need to know about it.

Introduction to Excess Employers Liability Insurance

If you are an employer, you are likely familiar with Workers' Compensation insurance. This type of insurance provides benefits to employees who are injured or become ill as a result of their job. However, Workers' Compensation does not cover all potential risks associated with employment. For example, if an employee sues you for negligence, your Workers' Compensation policy will not provide coverage.
This is where Excess Employers Liability insurance comes in. This insurance provides coverage above and beyond what is provided by Workers' Compensation. If an employee sues you and is successful in obtaining a judgment against you, your Excess Employers Liability policy will cover the damages up to the limit of your policy.
While Excess Employers Liability insurance is not required by law, it is a wise investment for any employer. This type of insurance can protect you from potentially devastating financial losses in the event that an employee sues you for negligence.

What Does Excess Employers Liability Insurance Cover?

If you're a business owner, it's important to understand what excess employers liability insurance is and what it covers. This type of insurance provides coverage for your business in the event that an employee is injured on the job and sues you for damages. Here's what you need to know about excess employers liability insurance.
Excess employers liability insurance covers any damages that an employee may sue you for if they're injured on the job. This includes any medical expenses, lost wages, and pain and suffering damages. If an employee wins their lawsuit against you, your excess employers liability insurance will pay out up to your policy limits.
It's important to have adequate excess employers liability insurance coverage because these lawsuits can be very costly. If you don't have this type of insurance and an employee sues you, you could be responsible for paying all of the damages yourself. This could potentially bankrupt your business.
Make sure you talk to your insurance agent about getting adequate excess employers liability insurance coverage for your business. It's worth the peace of mind knowing that you're protected in the event that an employee is injured on the job and sues you for damages.

Benefits of Excess Employers Liability Insurance

If you're self-employed, you're responsible for your own safety and well-being while working. That includes having the right insurance in place to protect you financially if you're injured on the job.
Most employers are required by law to have workers' compensation insurance, which provides benefits to employees who are injured or become ill as a result of their job. But what happens if your injuries exceed the coverage limits of your employer's workers' compensation policy? That's where excess employers liability insurance comes in.
Excess employers liability insurance is designed to provide additional financial protection for self-employed people who are injured on the job. If your medical bills and other expenses related to your injury exceed the limits of your employer's workers' compensation policy, this type of insurance will help pay for the difference.
Excess employers liability insurance can be a valuable safety net for self-employed people. It's important to understand how this type of insurance works and what it covers so that you can make sure you're adequately protected financially if you're injured on the job.

Cost and Coverage Types of Excess Employers Liability Insurance

Employers liability insurance is a type of insurance that provides protection for employers in the event that an employee is injured or becomes ill as a result of their work. The coverage can extend to cover legal costs and any compensation that may be due to the employee.
There are two types of excess employers liability insurance: direct and indirect. Direct excess employers liability insurance covers the employer for any legal costs and compensation that they may be liable for as a result of an employee injury or illness. Indirect excess employers liability insurance covers the employees themselves, should they sue the employer for damages resulting from their work.
The amount of coverage provided by excess employers liability insurance depends on the policy limits purchased by the employer. Coverage can be purchased with limits ranging from $1 million to $5 million, and higher limits may be available from some insurers. The cost of the policy will depend on factors such as the limit selected, the size and type of business, and the claims history of the company.

Understanding Your State’s Requirements for Excess Employers Liability Insurance

Most states require employers to have workers' compensation insurance, but not all states require employers to have excess employers liability (EEL) insurance. If your state does not require EEL insurance, your business is still exposed to liability if one of your employees is injured on the job and files a claim against you.
To find out if your state requires EEL insurance, contact your state's workers' compensation office or department of labor. Some states have specific requirements for how much EEL insurance coverage an employer must have. For example, in New York, employers must carry $1 million in coverage for bodily injury by accident or by disease.
If you are required to carry EEL insurance in your state, you will need to purchase a policy from an insurance company that offers this type of coverage. Make sure before purchasing a policy shop around and compare rates from different companies

How to Choose the Right Excess Employers Liability Plan for Your Business

When you're shopping for an excess employers liability (EEL) plan, it's important to find one that meets the specific needs of your business. Here are a few factors to consider when choosing an EEL plan:

The size of your business: Larger businesses will typically need more coverage than smaller businesses.

The type of business: Certain businesses, such as those that involve hazardous materials or dangerous work environments, may be required to carry higher levels of coverage.

Your location: If your business is located in a high-risk area, you may need to purchase additional coverage.

Your claims history: If your business has a history of workers' compensation claims, you may be required to purchase more coverage.

Alternatives to Excess Employers Liability Insurance

If you're looking for alternatives to excess employers liability insurance, there are a few options available. One option is to purchase an insurance policy that offers higher limits of coverage. Another option is to self-insure by setting aside money each month to cover any potential liability claims. Finally, you could also look into joining an employer's liability insurance pool. These pools are typically created by groups of businesses in the same industry and offer shared coverage at a lower cost.

Conclusion

Excess employers liability insurance is an important form of coverage that can provide additional protection for business owners. Understanding the basics of excess employer’s liability insurance, including what it covers and how to best use it, is key to ensuring your business has proper protection in place. By understanding this type of coverage you can make sure that you have the right amount and type of insurance for your business needs. With a little bit of research and knowledge, understanding excess employers liability insurance does not need to be a daunting task.