Most states, including California, have enacted Workers Compensation statutes which have the effect of making employers liable for employee injury sustained during the course of employment.

The employer's liability under the workers compensation laws is without regard to negligence. The employer must pay according to the law whether or not he or she is at fault.

Employers Liability Insurance is included in the policy because in some cases the employee or the nature of the injury may not be covered under workers compensation laws. In such cases the injured employee may still commence legal action under common law tort principles. If you employ full or part-time employees, you're required by statute to protect those individuals in the event of job-related injury.