What does employers' liability insurance primarily cover for a community association?

• A. It covers property damage caused by employees.
• B. It covers claims by injured employees (and their spouses) for liabilities excluded in the CGL.
• C. It covers medical malpractice.
• D. It covers discrimination claims by employees.

Answer: (B)

Employers' liability insurance fills the gap between workers' compensation and the general liability policy. It protects the employer when an employee’s work-related injury leads to a lawsuit alleging negligence or other liability that isn’t covered by the general liability policy. It specifically covers claims brought by the employee—and, in some cases, the employee’s spouse—for liabilities that the CGL excludes. This is why the description emphasizes claims by injured employees (and their spouses) for liabilities not included in the CGL.

Other options don’t fit because property damage caused by employees is covered by the general liability policy, not employers' liability; medical malpractice is a professional liability issue; and discrimination claims by employees are handled under employment practices liability insurance.