What type of coverage does employer's liability provide?

Employer's liability coverage is designed to protect employers against legal liability for injuries to employees that are not covered by workers' compensation laws. This type of coverage is essential because workers' compensation typically provides limited benefits and may not apply to all types of injuries or accidents that occur in the workplace. For example, if an employee suffers an injury due to negligence on the part of the employer or if an employee is injured in a manner that workers' compensation doesn't cover, employer's liability insurance would provide financial protection to the employer against lawsuits that arise from those incidents.

Understanding this aspect is crucial since it highlights a gap that workers’ compensation laws might leave, emphasizing the importance of additional coverage for employers. The other options do not accurately describe the function of employer's liability; for instance, it does not cover all employee injuries, property damage caused by employees, or fraud by employers. This specificity of coverage is what distinguishes employer's liability from other types of insurance policies.