Which statement regarding the purpose of Employers Liability Insurance is false?

The purpose of Employers Liability Insurance is to protect employers from certain types of claims made by employees that are not covered by Workers' Compensation Insurance. This includes coverage for consequential bodily injury, which refers to injuries that occur as a result of an employee's job-related injury affecting a third party, and claims arising from tort actions against the employer. Coverage is also designed to protect the employer against tort claims, such as those involving negligence.

The correct answer points out a misunderstanding regarding the coverage limits of the policy. Employers Liability Insurance is specifically focused on the jurisdictions listed in the Declarations page of the policy. The coverage does not automatically extend to states not named on this page; therefore, stating that it provides benefits to states not listed is misleading. This is crucial because the insurance is designed to be compliant with state laws and regulations, which can vary significantly from state to state.

In contrast, the other statements accurately reflect key aspects of Employers Liability Insurance, reinforcing the purpose and function of this coverage within the broader context of risk management for employers.