While employed in a certain company employees are entitled to a worker’s compensation – a type of mandatory insurance provided by all employers to pay for an employee’s medical care and compensate him or her for lost wages.
In case you wonder where these employers get their funds to finance their worker’s compensation, it is through another type of insurance they call employers liability insurance.
It is a legal requirement for any company that employs people to work for them. To simply put, the employer’s liability coverage is beneficial to both employees and employers. While it provides financial protection for the employees, should the unthinkable happen, it as well protects employers from financial ruin in lawsuits against them for employee’s work-related injuries.