What does "employer's liability insurance" typically cover?

Employer's liability insurance is designed to cover claims that arise from injuries to employees that are not addressed by workers' compensation insurance. This type of insurance is important because while workers' compensation provides benefits for medical expenses and lost wages due to work-related injuries, it does not cover all potential claims an employee might file against an employer. For example, if an employee alleges that an injury was caused by the employer's negligence, restitution for emotional distress, or a failure to maintain a safe work environment, those claims would typically fall under employer's liability insurance rather than workers' compensation.

This coverage acts as a safeguard for employers against lawsuits from employees, ensuring that they have financial protection if they face claims related to work-related injuries that do not fall within the framework of workers' compensation. Thus, the correct answer hinges on the understanding that employer's liability insurance addresses gaps specifically related to claims outside of workers' compensation benefits.