Learn More About Employers’ Liability Exclusions

When you purchase a BOP policy or elect to purchase a BOP policy with the Freelance Liability endorsement which limits the BOP policy to only Liability coverages, you are purchasing protection for injuries, property damage, or personal and advertising injury to others that you are legally liable for as the result of your negligence. The liability portion of the BOP policy covers injuries or damage to other people and property. 

However, the policy does not cover injuries to any employee of your business including the owner of the business, nor does it cover employers’ liability matters.  Protection for injuries to employees should be covered under a workers’ compensation policy or personal health insurance.

Here are several scenarios that would typically be covered under a General Liability policy. 

  • Scenario 1: An employee is mopping the floor and doesn’t place a wet floor sign. A customer enters the premise and slips and falls injuring himself. 
  • Scenario 2: An employee is serving a customer at a table. He drops a steak knife while clearing the table and cuts the customer’s finger.  
  • Scenario 3:  One of your employees is painting a hallway and while moving a ladder bump into the customer knocking them down and injuring the customer. 

Here are several examples of what the liability policy would NOT cover;

  • Scenario 1: An employee is mopping the floor while working. She slips on the wet floor and is injured. Bodily injury to employees is excluded.
  • Scenario 2:  An employee is working in the kitchen and cuts their finger while preparing food.  Bodily Injury to employees is excluded.
  • Scenario 3: An employee painting a hallway falls off the ladder and is injured. Bodily injury to employees is excluded.   
  • Scenario 4: One of your employees is let go because they are constantly late for work. They allege discrimination and/or they were wrongfully terminated.  Employers’ liability is excluded.

It’s important for business owners to thoroughly review their insurance policies, understand the coverage limits, exclusions, and requirements, and consult with their insurance agent to ensure their business risks are adequately managed. Insurance needs can vary significantly depending on the nature of the business, its size and the specific operations.    

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