SECTION I–COVERAGES
COVERAGE
A–BODILY INJURY AND PROPERTY DAMAGE LIABILITY
2. Exclusions
d. Workers Compensation and
Similar Laws
There is no coverage for any requirement or obligation of the insured imposed by any workers
compensation, disability benefits, unemployment compensation, or similar law.
Note: The intent of this exclusion and the Employers
Liability exclusion is to eliminate the possibility of the insured being
indemnified under this coverage form for an injury that workers compensation or
employer’s liability policies cover.
Related Court Case: Employee Injury
Exclusion Could Not Be Waived When Employer Failed to Carry Workers
Compensation Insurance
e. Employer’s Liability
Bodily injury to an employee of the insured as a result of his or her
employment by the insured or performing duties in conjunction with conduct of
the insured’s business is excluded. Bodily injury to the spouse, children,
parents, brothers, or sisters of that employee as a consequence of his or her
bodily injury is also excluded.
This exclusion applies whether the insured is liable as an employer or
in any other capacity, or whether it must share damages with or repay someone
else who must pay damages because of the injury. However, it does not apply to
liability the insured assumes under an insured contract.
Note: This clarification is especially important because
contractors, subcontractors, independent contractors, or leased employees are
being used to an increasing extent and there is uncertainty about who is
responsible for their injuries.
Note: Monopolistic states that provide or require workers compensation
coverage do not provide employer’s liability coverage. This could result in a
significant gap in coverage for the insured. Many insurance companies in such
states have developed manuscript or company coverage forms or utilize recently
developed state-specific ISO endorsements that add employer’s liability
coverage to the CGL Coverage Forms.
Related Articles:
Workers Compensation Monopolistic State Funds
Stop Gap–Employers’
Liability Coverage
