Utah General Contractors - Business and Law Practice Exam

Does liability insurance for employees cover injuries or death beyond what is covered by workers' compensation insurance?

1. Yes

2. No

3. Only for specific injuries

4. Only for death

The correct answer is: Yes

Liability insurance for employees is designed to provide coverage for injuries or deaths that may occur in the workplace that are not covered by workers' compensation insurance. While workers' compensation provides benefits for work-related injuries and illnesses, it has its limitations and exclusions. In specific cases where an employee's injury or death is due to negligence by a third party or in situations that fall outside the parameters of workers' compensation, liability insurance can cover those additional claims. This distinction is critical; workers' compensation is generally the exclusive remedy for injured employees regarding their employer, but liability insurance could provide supplementary coverage when actions or conditions extend beyond that scope. For example, if an employee is injured due to a defective piece of equipment that was not owned or provided by their employer, they may seek compensation through liability insurance rather than solely relying on workers’ compensation. This broader coverage aspect highlights the importance of having liability insurance to protect against various risks that may arise in the workplace beyond what workers' compensation addresses.