Georgia Property & Casualty Practice Exam

What type of liability coverage does an employer need when an employee sues under the dual capacity doctrine?

1. Employer's liability.

2. General liability.

3. Auto liability.

4. Professional liability.

The correct answer is: Employer's liability.

Under the dual capacity doctrine, an employer may be held liable in a capacity separate from their role as an employer. This happens when the employer, in addition to being an employer, is also acting in another capacity that poses a risk to the employee. For instance, if an employer provides a product that injures an employee, the employee may sue the employer not just for workers' compensation, but also for damages associated with that dual capacity. Employer's liability coverage is designed specifically to protect employers from claims brought by employees who sustain injuries or illnesses due to work-related activities but fall outside the purview of standard workers’ compensation claims. This coverage would apply when an employee claims they are injured due to negligence in a role other than that of an employer. In contrast, general liability, auto liability, and professional liability cover different types of risks. General liability typically protects against bodily injury and property damage claims, but does not specifically cater to employee-related claims under the dual capacity doctrine. Auto liability applies to accidents involving vehicles, while professional liability covers claims arising from professional errors or negligence. None of these options would provide the specific coverage needed for claims invoking the dual capacity doctrine. Thus, employer's liability is the necessary coverage in this context.