What are the Employers' Liability Limits for Workers' Compensation?

The correct answer, which specifies the Employers' Liability Limits for Workers' Compensation as not less than $1,000,000 each accident, aligns with the standard expectations for liability coverage required under workers' compensation policies. This amount provides adequate financial protection for employers in the case of employee claims related to workplace injuries or illnesses.

Employers' liability insurance is critical as it covers the employer for legal costs and damages that may arise when an employee sues for work-related injuries that are not covered by statutory workers' compensation benefits. A limit of $1,000,000 ensures that employers can handle multiple claims, especially in industries that have higher risks of workplace incidents.

While smaller amounts might seem sufficient, they may not offer the necessary coverage in various scenarios where the associated litigation costs and potential settlements can far exceed lesser limits. Establishing a standard at this level reflects both the risks involved in many workplaces and aligns with the recommendations of risk management professionals and industry practices.