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Employers Liability Insurance: Cost & Quotes From $18/mo

According to Insurance Journal, employees have a 12% chance to sue their employers. Employers liability insurance is one of the tools that your business has against liability lawsuits and related costs. It is related but usually separated from worker’s compensation insurance

Lawsuits that your employees raise might interrupt businesses operations and employer’s liability insurance can mitigate losses. This policy can take care of all employers liability to pay compensation in case an employee decides to sue for a work-related injury or illness and wins. Independent contractors, small business establishments, and established enterprises need employer’s liability insurance. 

If you are unsure about whether you need employers’ liability insurance, don’t fret, this article will break down the things you need to know, which include:

  • What is employers' liability insurance?

  • Is employers’ liability the same as employee benefits?

  • What is the difference between general liability and employers’ liability?

  • What does employers’ liability insurance cover?

  • What is excluded from employers’ liability insurance?

  • Cost of employer’s liability insurance

  • Best employers’ liability insurance companies



What is Employers' Liability Insurance?

Employers’ liability insurance is an insurance policy that protects your business against liability costs associated with employee injuries or illness. When employees become injured in your workplace through illness or physical injuries, they have the option to recover compensation from the company itself by filing a lawsuit.

These lawsuits can be a major business expense to defend your business from, which is why employers liability insurance can be so important. Legal fees from these cases can quickly balloon into tens of thousands of dollars or more.


The Employers Liability for Compensation

Employer liability is another way to say that an employer has a responsibility to give employees a safe workplace environment.  Employers are required by US law to have a broad duty of care to their employees.

If an employer fails to meet the liability requirement for their employees, they may be subject to fines, legal fees from lawsuits, and other associated costs. Employees may seek compensation from their employers. They are entitled to pay for compensation should they be found by a court of gov’t entity to be in violation of their responsibility.

For these reasons, it is essential that any business owner finds if they need to get employers liability insurance and what policy is suitable for them.

The US Department of Labor defines employers liability insurance as wholly distinct from workers compensation. Nearly every state requires every company, regardless of size, to have workers’ compensation insurance, and some states require both. Be sure to investigate the rules for the state that your business is located in.


Is Employers’ Liability the Same as Employee Benefits?

No employer’s liability is not the same as employee benefits. The differences between these two types of insurance are outlined below.

Employer Liability insuranceEmployee Benefits Insurance
Separately purchasedOffered as a part of commercial general liability policies
Covers liability resulting from employment negligence and workplace injuriesCovers mistaken enrollment or exclusion in employee benefits

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What is the Difference Between General Liability and Employers Liability Insurance?

General liability insurance is somewhat distinct from employers’ liability insurance. General liability insurance usually covers the following:

  • Bodily injury of customers and other third parties during business operations

  • Medical expenses if someone gets injured at your company

  • Property damage claims against your business

  • Personal injury resulting from slander, libel, and other related offenses


By contrast, Employer’s liability insurance covers exclusively incidents related to your employees.


What Does Employers’ Liability Insurance Cover?

The policies of employers liability insurance cover a variety of employee-related liabilities. This insurance can also vary by industry.

  • Employee-related lawsuits–The types of employee-related lawsuits covered can vary. You may face loss of consortium lawsuits, which employees file if they suffer a debilitating illness or serious bodily injury. There are also secondary lawsuits where the employee sues you due to a secondary relationship you have with them. Insurance would cover those costs as well

  • Third-party lawsuits–Sometimes employees may sue a third party over their workplace injury. If they receive some form of compensation, that third party may choose to sue your business to recoup some of the cost and assign some percentage of the blame to you. Insurance covers these types of situations as well

  • Workplace accidents from non-employees–Sometimes workplace illness or injuries can also affect non-employees, who would file a consequential body injury lawsuit. This is commonly seen in spouses of injured workers, who might suffer mental or physical stress for caring for their spouse that was injured in your workplace


So what are the usual policy limits? Employers liability insurance minimum cover is set at $100,000 per bodily injury by accident, $500,000 per bodily injury by disease, and $100,000 per employee. You can also find carriers going for the $500,000/$1,000,000/$500,000 minimum limit.

Another thing to mention about coverage limits is that this also depends on what business employer’s liability insurance is designed for. For example, construction employers liability insurance policies follow the $1,000,000/$2,000,000/$1,000,000 standard coverage amounts.


A person researching insurance options


What Are Excluded from Employers’ Liability Insurance?

Employers’ liability insurance excludes many different situations. This is especially the case if you have employer’s liability insurance with minimum coverage. When picking out contractor employers liability insurance, you will want to take your industry into consideration when deciding all the options you need. A list of the things excluded from employers’ liability insurance is listed below:

  • Intentional wrongdoing–If the employer is found to have intentionally caused the incident, your insurance policy will not likely protect you

  • Intentional injuries–Self-inflicted injuries, mental stress injuries, or injuries obtained while your employee is under the influence of restricted substances are typically excluded from having to be covered

  • Claims outside of the US–Most policies will only cover claims that happen within the US. You will need more extensive insurance coverage when operating in different countries

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Employers Liability Insurance Cost 

The average employers liability insurance cost is $50 per month or $600 per year for a $100,000/$500,000/$100,000 coverage. Your actual rate can change depending on your location, previous policy history, the dangerous workload of employees, and the size of your business.

Usually, you will be purchasing a bundled policy that includes workers’ compensation insurance since many worker’s comp policies include it. Workers comp insurance is required in virtually all states. Having to buy an employers liability policy separately is less common. Below is a breakdown of the best companies that offer good deals on employer’s workplace liability insurance:


Cost per MonthCost per YearBest for
NEXT$18$216Best overall; Fastest employer’s liability insurance
Coverwallet$19$228Comparing employers liability insurance quotes online
Hiscox$22$264Bundle deals
Thimble$24$288Quick coverage
Tivly$32$384Comparing employers liability insurance quotes over the phone
The Hartford$37$444Experienced specialists
AXA$42$504Industry expertise


Compare an employers liability insurance quote of one company to others in order to get a better idea of your rates. Click the “Get Quotes” button on this page to start. 

Compare Cheap Employer's Liability Insurance Quotes Online

Get all the best quotes from leading providers in a click of a button!

Best Employers Liability Insurance Companies 

The companies listed below have outstanding policies that make them some of the best employers liability insurance companies. When comparing employers’ liability insurance costs, be sure to take into account the policy advantages they have to offer to find the perfect employers’ liability coverage option.


NEXT Employers Liability Insurance

Pros

  • Best overall

  • Issues an online proof of insurance instantly

  • Fastest employers liability insurance

  • Great customer service and reputation

  • Excellent rates

  • Outstanding value for money

  • Get a 10% discount if you buy two or more policies 

Cons

  • If not bundling, other options may be better

NEXT's employer’s liability insurance coverage is tailored to the industry and your line of work. They have a price advantage compared to the competition and offer some excellent quality-of-life features on their site, like instant certificate access.

Best for: Best overall; Fastest employer’s liability insurance 

Average cost: $18 per month 

Our rating: 10/10


The Hartford Employers Liability Insurance

Pros

  • Specialists make the policy acquisition process simple

  • Easy to track your claims online

  • Up to $2 million in coverage limits

Cons

  • Agent required for the purchase process

If you think you need the help of a specialist agent to make your decision, The Hartford is a fine choice. They have a high policy limit that allows you to cover more if you think you need it. A higher coverage limit will usually increase your monthly premium.

Best for: Experienced specialists

Average cost: $37 per month 

Our rating: 10/10 


CoverWallet Employers Liability Insurance

Pros

  • Convenient website

  • Quickly issues a certificate of insurance

  • Compare quotes from different providers

  • Seamless online policy management

Cons

  • No separate employers liability insurance option

CoverWallet has its employers' indemnity insurance combined with its workers’ compensation insurance, which means that you will not be able to meet the requirements in some states that require a separate purchase. They have a great selection of insurance partners and a streamlined quote process.

Best for: Comparing employers liability insurance quotes online

Average cost: $19 per month 

Our rating: 10/10


Tivly Employer’s Liability Insurance

Pros

  • Compare quotes over the phone

  • Personalized approach when purchasing a coverage

  • A partner of reputable insurance companies 

Cons

  • Doesn’t issue instant online quotes 

Tivly is an insurance broker that offers help through its knowledgeable representatives. Your employers liability policy from this company will come from partners such as The Hartford, Liberty Mutual, and Gallagher. Call now and talk with a representative to compare quotes over the phone. 

Best for: Comparing employers liability insurance quotes over the phone

Average cost: $32 per month

Our rating: 10/10


Thimble Employers Liability Insurance

Pros

  • Small business options

  • Quick quote process

  • Easy to set up

Cons

  • Not a separate policy

Thimble is one of the most convenient options when you want to buy employers liability insurance. They have the option bundled into their general liability or workers comp policies. But if you need employer’s liability insurance as a stand-alone coverage, Thimble might not be very great. 

Best for: Quick coverage

Average cost: $24 per month 

Our rating: 10/10


Hiscox Employers Liability Insurance

Pros

  • 14-day refund policy with money-back

  • Small business-focused

  • Experts with liability insurance

Cons 

  • No Alaska coverage

Hiscox small business employers' liability insurance is part of their professional liability insurance coverage. They offer a small business-centered experience and a 14-day refund policy that makes committing to a policy less stressful

Best for: Bundle deals

Average cost: $22 per month 

Our rating: 10/10


AXA Employers Liability Insurance

Pros

  • Can purchase through phone, email, or website

  • Shop by Industry

  • Saves your quotes for comparison shopping

Cons

  • No weekend customer service

AXA offers an industry-focused insurance shopping experience that offers a flexible way to purchase insurance and pay for it. They don’t offer the cheapest employers liability insurance price, but the convenience of their service makes it a good choice. They combine employers liability insurance with their professional liability insurance policy.

Best for: Industry expertise

Average cost: $42 per month 

Our rating: 10/10


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