Workers' Compensation
Employer Liability
Employer liability — Part B of a workers' compensation policy — protects your business when an injured employee takes legal action against the employer directly, rather than relying solely on the workers' comp system. While the workers' comp system generally shields employers from lawsuits, there are scenarios where that shield doesn't fully apply.
Workers' Compensation
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.