The Difference Between Employers’ Liability and Workers Compensation: How It Impacts You
Insurance policies covering workplace expenses related to injuries are essential for a business. Both employers’ liability and workers compensation coverage are necessary to protect not only a business but the business’s employees, too. What is the difference? Do they impact employees differently? What impact does this have on you?
Understanding Employers’ Liability and Workers Compensation
While both employers’ liability and workers’ compensation are necessary for businesses and their employers, they serve different purposes. Not only do they go hand in hand to cover the business in the event of workplace injuries, but they are also in place to protect you as an employee. Workers compensation is required for almost all fields of business. While employers’ liability is not required for all fields in all states, it is recommended as a way to cover if something happens that the workplace is held liable for. Overall, as the employee, you’re likely going to be more concerned and interested in workers compensation, as this is what is in place to protect you.
What Is Employer’s Liability?
Employers’ liability, while not required, is strongly encouraged for all businesses. In the event of an injury at work, which is more than likely inevitable, businesses with employers’ liability have potential coverage for additional costs outside of workers’ compensation. This could include covering the cost of an attorney, court fees, and any settlements that may follow along with anything else associated with the claim. While you never want to assume the worst, you want to hope your employer is prepared with an employer’s liability plan in place.
What Is Workers Compensation
Workers compensation is a requirement for all states except Texas. In South Carolina, every business that employs four or more employees must have a workers compensation coverage in place the moment they hire an employee, even if they are less than full-time. This is important because it covers costs associated with workplace injuries like medical costs, lost wages, and any rehabilitation that may be required. Workers compensation is beneficial to both the employee and the employer. In the event of a workplace injury, the employee receives compensation for associated costs. The employer takes care of its employees and avoids other potential liabilities.
How Do Employers’ Liability and Workers Compensation Differ?
Workers compensation is utilized in the event of a workplace injury. It benefits the injured employee and protects the employer from most other types of lawsuits against the employer for things related to the injury. As an employee, in South Carolina, if you are injured at work and covered by workers’ compensation, in most situations you cannot sue your employer on account of the injury. You are limited to the benefits provided by the Workers’ Compensation Act. This is the exclusivity principle of workers’ compensation.
If you are not covered by workers’ compensation, or in certain situations involving intentional acts, you may be able to sue the employer and reach the employer’s liability insurance. But again, these instances are rare. But if possible, this is where employers’ liability insurance coverage comes in to cover costs associated with such a claim. Court fees, legal costs, and potential settlement fees could follow and employers’ liability helps alleviate some of the cost for the employer.
Feeling Confident in Both Employers’ Liability and Workers Compensation
Ultimately, the difference in employers’ liability and workers compensation is based on the situation. While one is required and the other is not, both could impact a business and its employees greatly. As an employee, you want to feel covered and supported. Finding an attorney who specializes in workers compensation will have the expertise to make sure you’re well represented and receive the compensation you deserve.
Williams & Kamb attorneys are experienced workers compensation lawyers with ample experience in getting their clients the compensation they deserve. If you’ve been involved in a workplace-related injury, we’re here to help. Schedule a free consultation with one of our attorneys today.