Employers' liability insurance provides protection for claims made by injured employees, such as third-party-over actions and dual capacity actions. Is this statement true or false?

• A. True
• B. False
• C. It covers only third-party actions
• D. It excludes third-party-over actions

Answer: (A)

Employers' liability insurance fills the gap left by workers’ compensation by covering liability the employer faces from claims by injured employees for injuries arising out of or in the course of employment. It explicitly extends to situations that can involve complex legal theories, such as third-party-over actions and dual-capacity actions. A third-party-over action is a claim brought through another party related to the injury, and a dual-capacity action occurs when the employer is sued in a different capacity (for example, as a product maker) beyond its role as employer. These scenarios go beyond the standard workers’ compensation remedy, so this coverage is designed to protect the employer in those cases. Therefore, the statement is true.