Employer Liability
Employer's liability protects your business when an injured employee's claim goes around the workers' compensation system. It works differently in Minnesota and North Dakota.
Employer Liability
It responds when a claim goes around the workers' comp system rather than through it.
While the workers' comp system generally shields employers from lawsuits, there are scenarios where that shield doesn't fully apply.
What You Need to Know About Employer Liability
When Workers' Comp Exclusivity Fails
Most states, including North Dakota, give employers immunity from employee lawsuits through the exclusive remedy doctrine. But deliberate employer actions, dual-capacity claims, or third-party-over actions can create exposure outside the workers' comp system where employer liability responds.
Spouse and Dependent Claims
An injured employee's spouse or dependents can sometimes file claims for loss of consortium or loss of support that are separate from the workers' comp claim. Employer liability covers defense costs and damages in these situations.
Defense Costs Included
Employer liability coverage pays your attorney fees and court costs for covered claims regardless of the outcome. Defending a workplace injury lawsuit, even one that is ultimately dismissed, can cost tens of thousands of dollars.
North Dakota and Minnesota Differ
In Minnesota, employer's liability is Part Two of the workers' comp policy. In North Dakota the state fund, WSI, does not provide employer's liability coverage, so an employer who wants this protection arranges it separately. That separate coverage is often called stop-gap coverage.