Workers’ Comp vs. Employers’ Liability: What’s the Difference?

In the standard North Carolina policy description, Part One is Workers Compensation Insurance and Part Two is Employers Liability Insurance. Part One provides statutory benefits under the state’s workers’ compensation law. Part Two is designed for compensable claims for occupational disease or work injury not covered under that law. Both parts relate to workplace injury, but they respond on different legal bases and have separate terms and limits.

The standard policy is an illustrative framework, not a promise that every lawsuit is covered. Check Part Two limits, exclusions, state schedule, and endorsements in the quote, and ask which employer-liability claims it covers. Also confirm whether separate state laws or policies affect the employer’s obligations. Part Two is not the same as employment-practices liability insurance, which addresses certain employment-related practices. Confirm the coverage label and policy form when comparing a quote.