Employer Liability Insurance is a type of insurance that protects businesses from financial losses resulting from employee claims related to work-related injuries or illnesses. This coverage helps employers pay for legal costs, settlements, or judgments if an employee sues for damages due to negligence or unsafe working conditions. This insurance is essential for businesses as it ensures that they can manage the financial risks associated with workplace incidents. It typically complements Workers' Compensation Insurance, which covers medical expenses and lost wages for injured employees, but does not cover all claims related to workplace injuries.