Which part of the policy provides coverage for the employer's legal obligations under employers liability?

• A. Part One—Workers Compensation Insurance
• B. Part Two—Employers Liability Insurance
• C. Part Three—Other States Insurance
• D. Part Five—Additional Coverages

Answer: (B)

In a workers’ compensation policy, coverage for the employer’s legal obligations under employers liability is provided by the employers liability portion. This part handles the employer’s liability for injuries to employees that aren’t paid through the workers’ compensation system, including the defense costs and any damages an employee may seek in a civil claim or lawsuit arising out of and in the course of employment. It protects the employer from the kinds of lawsuits that go beyond the exclusive remedy provided by workers’ comp, up to the policy limits. The other parts serve different purposes—Part One covers the employees’ workers’ compensation benefits, Part Three handles coverage in other states, and Part Five adds optional coverages—so they don’t address the employer’s liability exposure in the same way.