BROKLY

Employer's liability insurance

Published 2026-06-12 · by Brokly

In plain terms: The part of a workers' comp policy that covers lawsuits employees can still bring — claims that fall outside the state's no-fault benefit system.

Why it matters to you

Workers' comp benefits and employee lawsuits are different exposures sharing one policy: benefits flow on the state's schedule no matter who's at fault, while this part defends the suits that land anyway — a spouse's claim, an illness dispute. Contracts often demand specific employer's liability limits, so it's a number worth knowing.

Where you’ll see it

Part Two of a workers' comp policy; on certificates as a set of three dollar limits printed beside the statutory workers' comp line.

Related terms

Definitions describe how policies are typically structured — exact terms live in the policy. Not legal or compliance advice.