Employer’s Liability

Employer’s Liability Insurance is a crucial component of workers' compensation insurance that provides coverage for employers in case they are sued by employees for work-related injuries or illnesses not covered by workers' compensation benefits. This type of insurance is designed to protect employers from financial losses associated with legal expenses, settlements, or judgments that may arise from such claims. It is important to note that Employer’s Liability Insurance is separate from workers' compensation insurance, which covers medical expenses and lost wages for employees injured or made ill on the job.

Underwriting is a process used by insurance companies to evaluate the risk associated with insuring a particular employer and to determine the premium that will be charged for the coverage. Underwriting information plays a critical role in this process, as it helps insurance companies assess the likelihood of a claim being filed and the potential costs associated with that claim. Some key factors that may affect the premium for Employer’s Liability Insurance include:

Industry: Certain industries are inherently riskier than others in terms of employee safety. Industries with higher rates of workplace injuries or illnesses may face higher premiums due to the increased likelihood of claims.

Claims history: Insurers will typically review an employer's claims history to assess past patterns of workplace injuries or illnesses. A high frequency of claims or a history of costly claims may result in a higher premium.

Number of employees: The size of an employer’s workforce can also impact the premium. Employers with a larger number of employees may face higher premiums due to the increased exposure to potential claims.

Safety measures: Insurance companies may consider an employer's safety measures and risk management practices. Employers with strong safety programs and a commitment to reducing workplace hazards may be eligible for discounts on their premiums.

Location: An employer's geographic location may also influence the premium, as certain regions may have higher rates of workplace injuries or different legal environments that can impact the cost of claims.

Employers should work closely with their insurance provider to understand these factors and implement risk management strategies and potentially reduce insurance costs.

By shopping around and comparing multiple options, AMG can help clients secure cost-effective coverage that provides comprehensive protection. This can help clients save money on premiums without sacrificing their insurance coverage quality.