Employers’ liability and workers’ compensation are two types of business insurance. Most employee injury claims fall under workers’ compensation, but some injury claims and related expenses may fall under employers’ liability.
Our experienced Greenville workers’ compensation lawyer at Bobby Jones Law explains the difference between workers’ compensation and employers’ liability in Greenville, SC.
What Is Workers’ Compensation in South Carolina?
Workers’ compensation in South Carolina is a no-fault benefits system for on-the-job injuries. Workers can turn to their employers for quick access to medical care, replacement income, and disability benefits following workplace injuries.
Claims don’t start in traditional court. The employee isn’t required to prove employer negligence.
Most employers address this potential obligation by purchasing workers’ compensation insurance. For most workplace injuries, workers’ compensation is the exclusive remedy against the employer.
But employers still need employers’ liability insurance. There may be scenarios and ancillary costs that employers are still liable for in relation to employee injuries. Employers’ liability insurance covers these situations.
What Is Employers’ Liability Insurance?
Employers’ liability insurance is insurance taken out by an employer. It covers employer liability to employees that is not covered by workers’ compensation.
Businesses may have a variety of insurance policies. The specific policies may depend on the nature of the business, but commercial auto, commercial property, general liability, and professional liability are common. Employers’ liability is an additional type of business insurance.
Employers’ Liability vs. Workers’ Compensation Explained
Employers’ liability and workers’ compensation are related concepts, but they’re not the same. Workers’ compensation is the no-fault remedy for injuries sustained on the job. Most employee workplace injuries fall under workers’ compensation, at least as far as the employer is concerned.
But there are some circumstances and expenses that workers’ compensation may not cover. To cover those situations, employers take out employers’ liability insurance.
Usually, employers’ liability is sold as a package with workers’ compensation. Combined, the two types of insurance protect the business from potential liability to employees for injuries.
Is employers’ liability insurance the same thing as general liability insurance?
No. General liability insurance addresses liability to non-employees, like the public. For example, if a store patron slips and falls, the claim would fall under general liability, rather than employers’ liability. Employers’ liability insurance covers liability that may arise specifically to employees.
Is employers’ liability insurance the same thing as employment practices liability insurance?
No. Employers’ liability insurance is specifically for injuries and related claims. Employment practices liability insurance covers broader, non-injury liability to employees. Examples are wrongful termination, discrimination, and sexual harassment.
Workers’ Compensation and Employee Liability—What To Know
Whether you’re the injured employee or the employer, there are important things to know about employers’ liability and workers’ compensation.
What workers need to know
- Workers’ compensation is usually the exclusive remedy against the injured person’s own employer.
- But that’s not always the case; for example, when the worker is injured by the employer’s intentional tort.
- In addition, a worker may have a third-party negligence claim.
- When there is a tort claim against a third party and a workers’ compensation claim, there is no double recovery. But pain and suffering may be compensated in tort.
- Liability scenarios can be complex, especially when contractors, subcontractors, and third parties are involved.
It’s important to consider employers’ liability insurance as a potential source of compensation. An attorney can represent you at all stages of the claim.
What employers need to know
- Most employers are required to carry workers’ compensation insurance. In South Carolina, it is required when the employer has four or more employees.
- Employers’ liability insurance isn’t technically required, but it’s typically grouped with a workers’ compensation policy. It’s an important insurance policy when workers’ compensation doesn’t apply.
- In addition, employers’ liability may be required as part of a business contract, including with a private or public entity.
Liability scenarios can be complex, especially when there are contractor agreements and questions surrounding statutory employees. Ancillary expenses, such as attorneys’ fees and court costs, can be costly. Employers’ liability insurance can shield the business from unexpected liability.
When Can You Sue an Employer Outside of Workers’ Compensation?
You can sue an employer outside of workers’ comp for intentional harm. Workers’ compensation creates an exclusive remedy for injury by accident. If the employer causes intentional harm, they’re not protected by workers’ compensation. Deliberate intent to injure by the employer or their alter ego/surrogate may create liability.
Employers are not liable for an employee’s actions outside the scope of their employment. So, if a coworker hurts you on purpose, that may not qualify as an exception to workers’ compensation. Proving the employer’s intent to injure can require an investigation into what happened and the employer’s underlying motivations.
The employer doesn’t have the required insurance
An attorney can help you address a situation where the employer failed to have the required workers’ compensation insurance. You may still receive compensation.
Third-Party Claims in Greenville Workplace Injuries
In addition to other claims you may have, you may also have a claim against a third party for a workplace injury. Workers’ compensation is the exclusive remedy against the employer only. If someone else is responsible for the injury because of negligence, you may still bring a traditional personal injury claim.
There are special procedures and rules that apply when you have both a workers’ compensation claim and a personal injury claim. An attorney can explain your rights and what to expect in the process.
Which Type of Claim Applies to Your Situation?
When you’re injured at work, you may explore all types of claims that may apply—workers’ compensation, employers’ liability, and third-party tort. A lawyer can help you create a case plan.
Contact an Experienced Greenville Workers’ Compensation Lawyer
Robert “Bobby” Jones of Bobby Jones Law is an experienced workers’ compensation lawyer who represents injured workers and their families. He understands employers’ liability vs. workers’ compensation.
If you’ve been injured, we invite you to contact us. Talk to an attorney and get legal help today. Call or message us now.
