Which statement about Employers Liability Insurance (ELI) is correct?

Prepare for the Certified Authority of Workers Compensation (CAWC) Exam with multiple choice questions and in-depth content. Each question comes with detailed explanations and helpful hints to ensure you are ready for your certification.

Multiple Choice

Which statement about Employers Liability Insurance (ELI) is correct?

Employers Liability Insurance covers the employer’s legal liability for work-related injuries or illnesses that fall outside the wage-replacement and medical-benefit protections of workers’ compensation. It protects the employer if an employee sues for negligence or other recognized causes of action tied to workplace injuries, and it covers defense costs, settlements, or judgments.

Because discrimination claims are a separate risk area, ELI is not discrimination insurance. That’s why the statement that ELI is not discrimination insurance is correct.

The other statements misstate ELI’s role: wage replacement and medical benefits are provided under workers’ compensation, not ELI, so ELI isn’t about paying wages or medical bills.

Which statement about Employers Liability Insurance (ELI) is correct?

Prepare for the Certified Authority of Workers Compensation (CAWC) Exam with multiple choice questions and in-depth content. Each question comes with detailed explanations and helpful hints to ensure you are ready for your certification.

Which statement about Employers Liability Insurance (ELI) is correct?

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