Part One pays benefits required by the applicable workers' compensation statute without a stated limit, since the statute defines the obligation. Part Two, employers liability, covers claims by employees for damages outside the compensation system, subject to stated limits.
Part Two responds to third-party over actions, consortium claims, and dual capacity claims.
Alternative Names:
WC Policy, Part One and Part Two Coverage
Why it Matters?
Part Two is the coverage that matters in third-party litigation, because it responds when a third-party defendant seeks contribution or indemnity from the employer despite exclusivity. The employer's liability exclusion in general liability policies exists precisely to channel these claims to the comp policy, which makes coordinating the two coverages essential in construction and industrial losses.
Frequently Confused with
Related terms
Frequently asked questions
What does Part Two cover?
Why is Part Two important in third-party litigation?
