Which type of claims are covered under the Employers' Liability portion of a Workers Compensation Policy?

The Employers' Liability portion of a Workers' Compensation policy is designed to provide coverage for claims made by employees against their employer that are not covered by the state’s workers' compensation system. This can include situations where employees allege that their injuries were due to the employer's negligence outside of what is typically covered in a standard workers' compensation claim.

Third-party claims arise when an employee is injured as a result of someone else's negligence or an external factor, and this may provide grounds for the employee to pursue additional compensation beyond what workers' compensation offers from the employer. Employers' Liability covers lawsuits from those third parties who may be held responsible for contributing to the employee's injury, allowing employers to defend against such claims or settle them as needed.

The other options do not accurately capture the primary focus of Employers' Liability. The coverage does not inherently extend solely to employee claims since those are typically addressed under the standard workers' compensation benefits structure. Contractual claims are also not covered because they relate more to agreements between businesses rather than personal injury claims. Hence, recognizing that Employers' Liability specifically responds to third-party claims solidifies the correct understanding of this facet of workers' compensation insurance.