Employers Liability Insurance Wisconsin

Even with the safest workplace and the best training, accidents can still occur. And when an employee injury leads to a legal claim, your business could face high costs beyond what standard workers’ compensation insurance covers. That’s where employers’ liability insurance comes in.

At Colonial Insurance Agency, we help businesses across Wisconsin secure the proper protection, ensuring you’re covered for both required and unexpected risks associated with employee injuries. Whether you manage a small team or run a growing company, employers’ liability insurance helps safeguard your business, reputation, and financial future.

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Develop A Business Insurance Plan You Can Rely On

Property

Commercial property insurance protects your assets in the event that they are stolen, damaged or destroyed in a fire or natural disaster.

Liability

No matter the size and nature of your business, there are always uncertainties. We will work with you to determine your business risks and put together an insurance package that ensures protection.

Auto

Whether you have one vehicle or a whole fleet, we can help you implement custom coverage that will protect your business and personal assets from the additional exposure that commercial vehicles bring.

Worker's Comp

Workers’ compensation insurance covers employees injured on the job or in auto accidents while on business. It also covers work-related illnesses.

Crime

Every company is a potential target for crime. We’ll work with you to design insurance coverage that helps minimize your risk and protect your business.

Umbrella

Commercial umbrella insurance is designed to supplement your existing insurance policies, giving you an additional layer of protection for your business.

Errors & Omissions

Errors and omissions liability insurance protects any business that gives advice, makes educated recommendations, designs solutions or represents the needs of others. We’ll offer coverage that ensures that one simple mistake does not cause financial ruin.

Employment Practices

As an employer, you face a rising tide of employment practice litigation with various allegation issues. We will work with you to help you assess and manage your risk proactively.

Directors & Officers

Directors and officers liability insurance covers directors and officers for claims made against them while serving on a board of directors and/or as an officer. We work with you to protect your organization’s important asset: your senior leadership.

Key Protections Offered By Employers' Liability Coverage

This insurance is commonly bundled with workers’ compensation, but its scope is different.

It covers claims such as:

Third-party-over actions

When an injured employee sues another company, which then sues your business for its role.

Loss of consortium claims

When family members sue for loss of companionship or support.

Dual capacity suits

When you’re sued as both employer and product manufacturer or service provider/

Gross negligence lawsuits

While these claims are less common, when they do occur, they’re often costly. Having this policy in place ensures your business has legal defense coverage and financial backing in those situations.

What Is Employers' Liability Insurance?

If you’re asking, what is employers liability insurance? Here’s a simple explanation: It protects your business when an employee files a lawsuit over a work-related injury or illness that isn’t fully covered by workers’ compensation. While workers’ comp handles medical bills and wage replacement, employers’ liability coverage steps in when a claim goes further, such as accusations of negligence, unsafe conditions, or failure to provide proper training.

Without this coverage, your business could be liable for legal defense costs, settlements, and other damages.

Employers' Liability Insurance Vs Workers' Compensation

The difference between employers liability insurance vs workers compensation is essential to understand:

Workers’ compensation is a no-fault system that pays for medical expenses and lost wages when an employee is hurt on the job
Employers’ liability insurance kicks in if the employee believes your business was negligent or otherwise liable and decides to sue

Most Wisconsin businesses are legally required to carry workers’ compensation insurance if they have three or more employees. While employers’ liability insurance may not always be mandatory, it’s highly recommended and often bundled as part of a standard workers’ comp policy.

Who Needs Employers' Liability Insurance In Wisconsin?

If you have employees in Wisconsin, full-time, part-time, or temporary, this coverage is a smart addition to your insurance strategy. It’s especially relevant if:

You operate in industries with higher injury risks (e.g., construction, manufacturing, food service).
Your team works off-site or interacts with machinery and equipment.
You have clients or contracts that require full employer liability coverage.
You want to avoid out-of-pocket costs in the event of a complex claim.

And if you’ve ever asked, Do I need business insurance if I have an LLC, the answer is yes. An LLC protects your personal assets, but it doesn’t shield your business from lawsuits or operational risks. You still need the proper insurance to protect the business itself.

How It Fits Into Your Commercial Coverage

Employers’ liability insurance is a key component of a complete commercial policy. To learn more about how these pieces work together, visit our guide on what is commercial insurance, which explains how coverage types combine to protect your business.

If you’re still unsure where this fits into your overall plan, we’re happy to walk you through your options and explain the value of each one.

What Our Clients Are Saying

Colonial Insurance Agency is committed to providing our clients with the exceptional service that they deserve.

Dan provides exceptional service and expertise! He tailors the perfect coverage to fit needs and budget, explaining everything clearly and promptly addressing any questions. I highly recommend him for anyone seeking reliable insurance guidance.

We have been with Colonial Insurance for many, many years and have received nothing but five-star service. Don and Dan MacLeod and their staff have been amazing to work with. Our two children are also with Colonial and are very happy as well.

Jack Larsen has done a great job quoting everything from auto, home, and business insurance for me and my family. He is professional, knowledgeable, and prompt with his communication and work. I would recommend Jack and Colonial for any and all insurance needs.

Protecting Your
Home. Work. Future.

Frequently Asked Questions

What does employers’ liability insurance cover?

It covers legal costs and damages when an employee sues your business for a work-related injury or illness that goes beyond what workers’ comp covers.

Is it required in Wisconsin?

It’s not always legally required, but it’s strongly recommended and typically included with workers’ comp policies. Some contracts may also require it.

How much does it cost?

Costs vary based on payroll, industry risk, and coverage limits. We shop multiple carriers to find affordable options that match your needs.

Can I buy it separately from workers’ comp?

In most cases, it’s included as part of a workers’ comp policy. However, we can help you understand and adjust the limits to suit your business.

Does it protect me from harassment or discrimination claims?

No. You’ll need employment practices liability insurance for that type of protection. We can include it in your policy package.

Get A Free Quote For Employers' Liability Insurance In Wisconsin

Don’t leave your business exposed to legal risk. With employers’ liability insurance from Colonial Insurance Agency, you get peace of mind knowing you’re protected—both when accidents happen and when claims go beyond the expected. Our team makes the process simple, transparent, and tailored to your specific business needs.

Call us at (262) 255-3770 to request your free quote or speak with an advisor. We’re here to help Wisconsin businesses like yours protect what matters most.

Colonial Insurance Agency specializes in all aspects of business and personal insurance. Contact us anytime for the best service and advice for all your insurance needs.

Employers Liability Insurance Wisconsin