The employee liability exclusion is a clause found in some commercial general liability insurance policies. This clause specifies that the policy does not cover injuries sustained by employees or their family members while they are engaged in work-related activities. The primary purpose of this exclusion is to prevent overlap with workers' compensation coverage, which is designed to address such injuries.
This term is commonly used in the context of insurance law and employment law. It is relevant for businesses that purchase general liability insurance to understand their coverage limitations. The employee liability exclusion is particularly important for employers, as it clarifies the boundaries of their liability in relation to employee injuries. Users can manage related legal documents, such as insurance policies and claims, using templates from US Legal Forms.
Here are a couple of examples of abatement:
Example 1: A warehouse employee injures their back while lifting heavy boxes. Because this injury occurred during work hours, it is not covered under the general liability policy due to the employee liability exclusion. Instead, the employee would need to file a workers' compensation claim.
Example 2: An employee's spouse is injured while visiting the workplace and is involved in an accident. The general liability policy would not cover this injury because of the employee liability exclusion. (hypothetical example)
Examples of state differences (not exhaustive):
| State | Notes |
|---|---|
| California | Workers' compensation laws are comprehensive and may affect how exclusions are interpreted. |
| Texas | Employers have more flexibility in opting out of workers' compensation, which can influence liability exclusions. |
| New York | Strict regulations on workers' compensation may limit the applicability of exclusions. |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
| Term | Definition | Key Differences |
|---|---|---|
| Workers' Compensation | A form of insurance providing wage replacement and medical benefits to employees injured in the course of employment. | Covers employee injuries, while the employee liability exclusion denies coverage under general liability policies. |
| General Liability Insurance | Insurance that protects businesses from claims of bodily injury and property damage. | Does not cover employee injuries due to the employee liability exclusion. |
If you are an employer or business owner, it is essential to review your insurance policies to understand the implications of the employee liability exclusion. Consider the following steps:
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The purpose is to prevent overlap with workers' compensation coverage for employee injuries.