What does employer's liability insurance cover?

Employer's liability insurance provides coverage specifically for claims made by employees for work-related injuries or illnesses that are not covered by workers' compensation. This type of insurance is designed to protect employers from lawsuits stemming from such claims. While workers' compensation generally covers a broad range of workplace injuries, there may be instances where certain conditions or incidents fall outside the purview of workers' compensation laws, and this is where employer's liability insurance comes into play. It can address situations like negligence claims from employees who believe their employer's actions or lack of safety measures contributed to their health conditions or injuries, particularly diseases that may not be classified as a traditional workers' comp claim.

The other options mentioned — legal claims for workplace injuries covered by workers' compensation, costs associated with hiring new employees, and employee theft from the workplace — are not relevant to the scope of employer's liability insurance. The first option pertains to workers' compensation itself, while the latter two options deal with different aspects of employment that are outside the focus of employer's liability insurance coverage.