Part Two - Employers Liability Insurance (Stop-Gap Coverage)
1. How This Insurance Applies - This insurance applies to bodily injury by accident, bodily injury by disease, or bodily injury resulting in death.
a. The bodily injury must:
1) Arise out of, and in the course of, employment.
2) Take place during the policy period.
3) Be caused by the conditions of employment.
b. The employment must be necessary to the work described in the Information Page.
c. Any suits for damages for bodily injury must occur in the United States, its territories and possessions, or Canada.
d. The insurance protects the insured against damages under the Doctrine of Dual Capacity, which applies when an employee is injured by a product the employer manufactures.
Note: Employees cannot purchase supplemental benefits.
2. The Insurer Will Pay - The insurer will pay the sum, up to policy limits, the insured must legally pay for damages because of bodily injury to employees. The bodily injury must be covered by Part Two - Employers Liability Insurance, and the damages paid by the insurer include:
a. Those for which the insured is liable to a third party because of a claim.
b. Care and loss of service.
c. Consequential bodily injury to an injured worker's spouse, or immediate family member.
d. Actions brought against the insured in a capacity other than as an employer.
a. Liability assumed under a contract.
b. Punitive damages awarded because an employee was employed in violation of law.
c. Bodily injury to an employee while employed in violation of law with the knowledge of an insured.
d. Any obligation imposed by any Workers' Compensation, Occupational Disease, Unemployment Compensation, or Disability Benefits law.
e. Bodily injury intentionally caused by the insured.
f. Bodily injury caused outside of the United States, its territories and possessions, or Canada. (Injury to a resident temporarily outside of these areas would be covered.)
g. Damages arising out of coercion, criticism, defamation, evaluation, reassignment, discipline, harassment, humiliation, termination of, or discrimination against, any employee, as well as arising from any personnel practices, policies, acts, or omissions.
h. Bodily injury arising from work that falls under federal jurisdiction.
i. Fines or penalties imposed for a violation of federal or state law.
j. Damages payable under the Migrant and Seasonal Agricultural Worker Protection Act.
4. The Insurer Will Defend - The insurer will defend any claim for benefits payable by this insurance. The insurer reserves the right to investigate and settle claims.
5. The Insurer Will Also Pay - The following amounts in addition to other amounts payable under the policy:
a. Expenses incurred by the insured, at the request of the insurer, but not loss of earnings.
b. Premiums for appeal bonds.
c. Litigation costs taxed against the insured.
d. Interest on a judgment against the insured.
e. Expenses incurred by the insurer.
6. Other Insurance - The insurer will not pay more than its share of the benefits and costs covered by the policy.
7. Limits of Liability - The Limits of Liability shown on the Information Page are the most the policy will pay for all damages covered by the policy for bodily injury by accident or disease. The minimum limits are $100,000 per accident for injuries, $100,000 per employee for disease, and $500,000 aggregate for disease.
8. Recovery From Others (Subrogation) - The insurer reserves the right to recover its payments from anyone liable for injury.
9. Actions Against the Insurer - There will be no right to actions against the insurer unless:
a. The insured has complied with all terms of the policy.
b. The amount owed by the insured has been determined with the insurer's consent or by trial and final judgment.